Solana (SOL) is the fifth-largest cryptocurrency by market capitalization, and its daily chart is issuing warning signals, suggesting a potential downward momentum. On December 3, 2024, the sentiment across the entire cryptocurrency sector appears to be bearish, making it difficult for assets to gain traction.
Solana (SOL) technical analysis and upcoming levels
During the price adjustment phase, Solana (SOL) failed to hold key support levels, breaking below the $227 mark. According to expert technical analysis, after reaching an all-time high, SOL entered a consolidation phase, forming a bearish head and shoulders price pattern.
In today's bearish (or price adjustment) stance, SOL has broken the neckline of the bearish pattern and is attempting to close below it. Based on recent price trends and historical momentum, if SOL's daily closing price is below $226, it is highly likely to drop 10% to the $200 mark in the coming days.
On the positive side, SOL's trading price on the daily chart is above the 200 Exponential Moving Average (EMA), indicating an upward trend. Meanwhile, the Relative Strength Index (RSI) suggests a potential upward rebound in the coming days, as its value approaches the oversold region.
$159 million SOL outflow
On-chain analysis company Coinglass indicates that despite the bleak outlook, whales and institutions have shown strong confidence and interest in this altcoin. SOL's spot inflow/outflow data shows that over the past four days, exchanges have witnessed a massive outflow of SOL valued at $159 million.
In the context of cryptocurrencies, outflow refers to whales withdrawing tokens from exchanges to their wallets, which is considered a bullish signal and may indicate a potential rise in the coming days.
Considering the outflow of funds, SOL investors seem to be taking advantage of the current market sentiment and price decline to acquire more assets.
Current price momentum
As of the time of writing, SOL's trading price is close to $222, having dropped 6.55% in the past 24 hours. During the same period, its trading volume surged by 101%, indicating increased participation from traders and investors compared to the previous day.