As the market remains uncertain, Solana (SOL) is facing a lack of bullish support and weakening as the market downturn persists.
Large Transfer of SOL to Binance by a Whale
On January 10, 2024, Whale Alert reported that a crypto whale moved a substantial 246,064 SOL, valued at $45.76 million, to Binance.
This transfer suggests a potential sell-off and indicates investor sentiment leaning towards short-term positions due to the recent price decline of over 16% in the past three days. This has brought SOL to a critical support level.
Solana (SOL) Technical Analysis and Future Levels
After the significant price drop, SOL has reached a crucial support level at $178, coinciding with the 200 Exponential Moving Average (EMA) on the daily chart. This level is pivotal for SOL in the upcoming days.
Technical analysis suggests that if SOL breaks below $175 and closes a daily candle underneath, it could potentially drop by 11% to $156 or lower if bearish sentiment persists. Conversely, holding above $178 could lead to an upside rally similar to previous patterns on the daily chart.
Rise in Whale Activity and Exchange Outflows
Besides the mentioned whale transaction, exchanges have seen outflows of over $60 million in SOL within the last 24 hours. With the $45.7 million transfer, a total of $60.7 million worth of SOL has been dumped, reflecting market sentiment.
Current Price Movement
Currently, SOL is trading around $182, experiencing a 7.95% decline in the past 24 hours. Trading volume has decreased by 26%, indicating reduced activity from traders and investors compared to the previous day.