Whale is Moving Huge Amounts of Solana (SOL). Is its Price About to Drop?

In the last 24 hours, Solana (SOL), currently the seventh-largest cryptocurrency by market capitalization, experienced movements that caught the attention of analysts and the community. Data from Whale Alert, the transaction tracker, revealed three significant transfers, involving more than 2.1 million SOL coins.

In the first transaction, 899,999 SOL, with an estimated value of $50,456,212, were moved between unknown wallets. The second transaction involved the transfer of 900,000 SOL, valued at $50,465,194, again between unidentified destination wallets. The third and most noteworthy was when an unknown whale transferred 336,999 SOL, equivalent to $19,100,615, to the Coinbase exchange.

? ? ? 900,000 #SOL (50,465,194 USD) transferred from unknown wallet to unknown wallethttps://t.co/BFkE74MUew

— Whale Alert (@whale_alert) November 27, 2023

Although the community speculates about possible inferences based on the destinations of these transactions, the exact reasons behind these movements have not been revealed. The first two, involving transfers to unknown wallets, could be indicative of over-the-counter (OTC) transactions, commonly conducted outside conventional platforms.

The third transaction, targeting a cryptocurrency exchange, specifically Coinbase, suggests the possibility that they were intended for sales. This move could be interpreted as part of investors’ strategies to liquidate assets. It is common to see transfers to exchanges before significant market adjustments.

Solana Needs to Break Resistances

Solana was the protagonist of an impressive ascent throughout the year, registering a 450% increase. However, the recent 24 hours brought about a 5.02% decrease, placing the price of SOL at $54.54 at the time of writing and marking a 19% fall from its recent highs of $68.18.

This price adjustment is not exclusive to Solana. Other cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) also experienced declines in the same period. Bitcoin and Ethereum dropped by 1.64% and 2.43%, respectively.

Solana’s attempt to surpass the $69 level was resisted by bearish forces. A successful breakthrough of this level could pave the way for new yearly highs, with a potential target of $75.

In contrast, if the price fails to hold and drops from its current level. Analysts suggest that the next key support area is around $51. If this level is breached, it could lead Solana to further decline to $48, where buyers are likely to re-enter the market.