Contents
Solana (SOL) Technical Analysis and Upcoming Levels
Whale Activity Draws Attention to SOL
SOL Current Price Momentum
Solana (SOL), the world’s fourth-largest cryptocurrency by market cap, is set to lose ground to Ripple’s native token XRP. SOL appears to be consolidating in recent days, while XRP has surged by almost 95% in the same period, overtaking Binance Coin (BNB) and reaching a market cap of $106.5 billion.
Solana (SOL) Technical Analysis and Upcoming Levels
However, this consolidation on the four-hour time frame appears to be a bearish inverse head and shoulders price action pattern. According to expert technical analysis, SOL appears to be in a bearish trend and if it fails to hold the $226 level, the possibility of a 10% drop is strong and could potentially reach the support level at $202.
Source: TradingView
On the other hand, this bearish thesis could fail if SOL closes a four-hour candle above the $245 level.
On the positive side, SOL is trading above the 200 Exponential Moving Average (EMA) on both the daily and four-hour time frames, suggesting an uptrend. Meanwhile, SOL’s Relative Strength Index (RSI) suggests that the altcoin still has the potential to rally in the coming days. Currently, SOL’s RSI sits at 49, close to the oversold area, further highlighting a potential buying opportunity.
Whale Activity Draws Attention to SOL
In addition to technical analysis, on-chain analytics firm Coinglass reported that whales are showing strong interest in the altcoin. According to SOL spot inflow/outflow data, exchanges have recorded a significant outflow of SOL worth $182 million since November 23, 2024. This significant outflow suggests that whales may be transferring tokens from exchanges to their wallets.
The crypto community sees this significant token pullback as a potential buying opportunity and a harbinger of a possible bullish rally.
SOL Current Price Momentum
At press time, SOL is trading around $240 and has registered a price decline of 1.75% over the past 24 hours. Trading volume is down 3% during the same period, indicating reduced participation from traders and investors amid the ongoing price consolidation.