Solana has been making headlines lately, outshining established chains like Ethereum. However, the surge in memecoins has raised concerns as a few rug pulls have negatively impacted the SOL price rally. The selling pressure has been intense, making it difficult for the bulls to stage a significant comeback. Despite this, the SOL price managed to experience a strong upswing, staying above a crucial support level at $133.
The recent rebound in the SOL price has sparked the question of whether it signifies a trend reversal or if it’s a trap set for the bulls. One of the main drivers behind the recent uptick is believed to be significant whale activity. According to reports from LookonChain, whales withdrew a substantial amount of SOL from Binance, totaling over $7.5 million. This move led to a surge in the SOL price as market participants grew optimistic about future price movements. The token managed to break above the psychological resistance at $145 but struggled to surpass the $150 mark.
However, a recent whale activity has cast a shadow of uncertainty over the token. LookonChain shared an update revealing that 5 whale accounts unstaked 5.52 million SOL, amounting to $810 million, in the past 12 hours. A significant portion of this was deposited into Coinbase Prime, potentially signaling a looming selling pressure on the token. Such large movements of crypto assets to exchanges by whales often have a substantial impact on the token’s value.
In terms of price analysis, the SOL price has experienced a significant pullback in recent weeks, dropping by more than 57% from its highs. The influx of whale activity seems to have altered the trajectory of the token, leading to a potential period of consolidation between $138 and $145. Despite a rebound from local lows around $125, the SOL price has struggled to break key resistance levels. The RSI indicator shows bearish divergence, while the CMF has failed to rise above 0, indicating that bulls are maintaining strength despite the rebound. On the other hand, the MACD suggests a decrease in selling volume and a potential bullish crossover.
In conclusion, the Solana (SOL) price is likely to remain in a consolidation phase for the time being. If the MACD does indeed undergo a bullish crossover, we could see a significant price increase. Until then, the token is expected to continue within its current accumulation phase.