$SOL has been a bit precarious lately, and its price chart is giving some not-so-great signals, looking like it might be heading down. On December 3, 2024, the entire crypto market seemed a bit sluggish, and everyone appeared to be out of energy.

SOL was holding up quite well before, but now the crucial support level of $227 cannot be maintained. Experts looking at this chart say, oh dear, this is not a good sign, as it has formed a bearish head and shoulders pattern. Now that SOL has broken below this pattern's lower line, if it can't hold, it might drop below $200, with a possible decline of around 10%.

However, there is still some hope. SOL's current trading price is still above the 200-day moving average, indicating that it still has some foundation. Plus, there’s something called the Relative Strength Index, which shows that SOL might have already dropped quite a bit, nearing the oversold zone, and it could rebound any day now.

Looking at the on-chain data, although the market atmosphere is poor, those whales and institutions seem to still be quite optimistic about SOL. In the past four days, they have withdrawn $159 million worth of SOL from exchanges, which is no small amount. In the crypto world, money flowing out often means that big players are hiding tokens in their wallets, waiting for a price increase, which is usually seen as good news.

It seems that SOL investors might want to take advantage of the current market downturn and price drop to buy more SOL and hold it. Currently, SOL's price is around $222, having dropped 6.55% in the past 24 hours, but trading volume surged by 101%, indicating that people are still paying attention to SOL and actively participating in trading.

Overall, the situation for SOL is a bit complex; although the price drop is concerning, the actions of big players and the increase in trading volume provide a glimmer of hope. In the next few days, let's wait and see how SOL actually performs.

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