The cryptocurrency market has been experiencing heightened volatility, with Bitcoin (BTC) prices dropping below a crucial support level around $92k. This turbulence has significantly impacted other cryptocurrencies, including Solana (SOL), which has been on a downward trend. Despite Solana being a large-cap altcoin, boasting a fully diluted valuation of approximately $112 billion and an average 24-hour trading volume of around $4.6 billion, it has seen a steep decline of over 12 percent in the past four days. As of the mid-European session on Friday, January 10, Solana was trading at about $191.
This downward trajectory has led to the liquidation of nearly $20 million from Solana’s leveraged market, primarily affecting long traders. Furthermore, Solana’s Futures Open Interest (OI) saw a decrease of approximately 2 percent in the last 24 hours, settling at around $5.79 billion at the time of writing.
Solana Whale Panic Sells
Recent on-chain data analysis has revealed a significant movement involving a major Solana whale. This whale has been actively unstaking and depositing a substantial amount of coins to the Binance exchange. Over the past 24 hours, the whale unstaked 245,921 SOL and subsequently deposited 246,064 SOL on Binance. This activity suggests that the whale might be capitalizing on profits following Solana’s impressive rally in 2024.
The Solana network is predominantly controlled by investors who are keen on earning passive income through its staking program. According to data from Solanacompass, there are approximately 1,238,071 active stakers on the Solana network, collectively staking a total of 393,252,393 SOL, which is valued at around $75 billion.
Midterm Expectations for SOL Price
Solana’s recent price movements follow an impressive bullish breakout from last year’s consolidation in November, which was partly influenced by the triumphant victory of Donald Trump. On the daily time frame, Solana’s price has been retesting its support trend line. From a technical analysis perspective, Solana is approaching a critical support level near $180. This level is crucial for maintaining the current price structure. If this support fails to hold in the coming days, Solana could face a selloff, potentially pushing its price down to a support range between $120 and $150.
In conclusion, the current volatility in the cryptocurrency market presents both challenges and opportunities for investors. Solana, like many other cryptocurrencies, is influenced by broader market trends, whale activities, and technical factors. As the market continues to evolve, keeping an eye on these dynamics will be crucial for making informed investment decisions.
