Solana (SOL) Witnesses Significant Activity from Whales: Potential Trend Reversal in the Cards?

Crypto Data Tracker Detects Significant Whale Transfers for Solana (SOL)

The seventh largest cryptocurrency by market cap, Solana (SOL), has recently experienced major whale activity, as reported by crypto data tracker Whale Alert.

In the last 24 hours, over 2.1 million Solana coins were moved in three notable transactions:

• 899,999 SOL, valued at $50,456,212, transferred between unknown wallets.
• 900,000 SOL, valued at $50,465,194, moved between unknown wallets.
• An unknown whale transferred 336,999 SOL, worth $19,100,615, to the Coinbase crypto exchange.

Whale Alert Tweeted about the second transaction:

🚨 🚨 🚨 900,000 #SOL (50,465,194 USD) transferred from unknown wallet to unknown wallet

The exact reasons for these token movements remain unknown, but insights can be gleaned from the destinations to which they are being shifted.

Possible Inferences from Token Movements

The first two transactions, involving transfers to unknown wallets, may suggest over-the-counter (OTC) trading, which takes place outside of a cryptocurrency exchange.

The most recent transaction, indicating a shift to a cryptocurrency exchange, particularly Coinbase, may imply selling—a common reason for moving tokens to exchanges.

Is a Trend Reversal on the Horizon?

After experiencing a remarkable 450% surge year-to-date, Solana is currently undergoing a price pullback. As of the latest update, SOL has seen a 4.75% decline in the last 24 hours, trading at $55, down 19% from recent highs of $68.18.

This 24-hour drop aligns with similar movements in the broader crypto market, with major coins such as Bitcoin (BTC) and Ethereum (ETH) down 1.47% and 2.46%, respectively, within the same timeframe.

Solana’s attempt to surpass the $69 level faced resistance from bears. If this level is successfully breached, Solana may target new yearly highs, aiming for $75 next.

Contrarily, if the price falls from its current level, bears will likely attempt to break through the strong support at $51, a level from which the SOL price has rebounded twice in recent weeks. If successful, Solana may experience a further decline to $48, where buyers are anticipated to enter.