Solana (SOL), recognized as the fourth-largest cryptocurrency by market capitalization, has become the focus of significant interest among crypto enthusiasts. This interest persists amid an ongoing price correction phase, where varied investor actions are observed. While some investors are strategically accumulating Solana tokens, others are choosing to liquidate their holdings, reflecting diverse market strategies.
Report Revealed $23 Million Solana Sell-off
On November 26, 2024, a notable development was reported by Lookonchain, a whale transactions tracker, on its social media platform X (formerly known as Twitter). The report detailed a substantial sell-off of Solana tokens by Pump Fun, a meme coin generator operating on the Solana blockchain. This entity offloaded a remarkable 99,999 SOL, valued at approximately $22.74 million, primarily through the Kraken cryptocurrency exchange.
Pump Fun has amassed over 1.487 million SOL tokens, equivalent to $345 million, from its meme coin generation activities. Out of this substantial holding, it has liquidated 998,242 SOL tokens, representing $180.4 million, at an average price of $180.70 per token. While this offload might seem significant, market analysts believe that it aligns with the current market sentiment and is not considered excessive. Nevertheless, such actions can influence market dynamics, potentially creating selling pressure that may lead to further price declines.
Solana (SOL) Technical Analysis and Upcoming Level
In the realm of technical analysis, Solana (SOL) is currently positioned at a critical support level of $230. However, the cryptocurrency faces challenges due to substantial selling pressure coupled with the broader market correction. Should SOL fail to maintain this support level, analysts predict a potential 12% decline, which could see the price drop to the $200 mark in the forthcoming days.
On a positive note, Solana is trading above the 200 Exponential Moving Average (EMA) on a daily chart, which generally signals an uptrend. Additionally, the Relative Strength Index (RSI), a key technical indicator frequently used by traders and investors, stands at 57.30, below the typical overbought threshold of 70. This indicator suggests the possibility of an upward rally in the near future, offering a glimmer of optimism amidst current market conditions.
Current Price Momentum
As of the latest market update, Solana (SOL) is trading close to the $230 mark, having experienced a price decline of over 3.55% in the past 24 hours. Concurrently, trading volume has surged by 24%, indicating increased activity and engagement from traders and investors during this period of price correction. This heightened participation reflects the dynamic nature of the cryptocurrency market, where opportunities and risks coexist amid ongoing fluctuations.
