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Despite significant price fluctuations in the past 24 hours, Solana (SOL) has maintained its crucial support at $175. However, this volatility has led some whales to lose confidence and dump their holdings, impacting the market today.
Crypto Whale Dump $22 Million of SOL
On January 13, 2024, Whale Alert, a blockchain-based transaction tracker, posted on X (formerly Twitter) that a crypto whale had dumped 122,620 SOL tokens worth $21.75 million onto the Kraken cryptocurrency exchange. However, the wallet address remains unknown.
This notable dump was witnessed in the market when SOL fell below its crucial support level of $175 and approached the $168 level. This initially shifted market sentiment and indicated that SOL had broken down from its crucial support level, signaling bearish price action. However, as sentiment cooled down, SOL rebounded above the support level and appears to be recovering.
Solana (SOL) Price Action and Key Level
According to expert technical analysis, the key level for SOL in the upcoming days is $175. SOL remains bullish as long as it holds this support level. If it sustains this level, there is a strong possibility that it could soar by 22% to reach $220 in the future.
Currently, the altcoin has returned to its consolidation zone, where it has remained for the last four trading days. For intraday traders, if SOL closes an hourly candle above the $193 mark, there is a strong possibility that it could witness a price surge of over 7% to reach the $207 mark.
However, Solana’s bullish thesis will only hold if SOL maintains itself above the $175 level, otherwise, it may fail.
Bullish Signal From Technical Analysis
On the positive side, despite this price decline, SOL has held itself above the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating an uptrend.
Additionally, SOL’s Relative Strength Index (RSI) is near the oversold area, signaling a potential price recovery that traders and investors are anticipating.
Current Price Momentum
Currently, SOL is trading near $183.3 and has experienced a price decline of over 2.50% in the past 24 hours. However, during the same period, its trading volume surged by 240%, indicating heightened participation from traders and investors, potentially driven by SOL’s current discounted price.
