$SOL is currently ranked fifth in global market capitalization, but the recent daily chart seems a bit off and looks like it is heading downward.
On December 3, 2024, the entire market appears somewhat sluggish, as if all assets have been put on pause and can't move.
Let's take a look at SOL's technical analysis; it was previously thriving, but now it seems to be struggling, unable to hold the key position of $227.
This trend resembles an inverted head and shoulders pattern—bearish in nature. Now SOL has broken below an important line; if today's closing price remains below $226, it might drop to around $200 in the next few days, with a possible decline of about 10%.
However, there is still some hope. SOL is still hovering above the 200-day moving average, indicating that the overall trend is still upward. Moreover, the relative strength index shows that SOL may be nearing the oversold zone, suggesting that it could bounce back in a few days.
Looking at the on-chain data, a company called Coinglass reports that, although the market seems to be struggling, the big players are still quite interested in SOL. In the past four days, $159 million worth of SOL has been withdrawn from exchanges by these big players, which is usually a good sign, indicating that they might want to accumulate some assets and sell later when prices rise.
So SOL holders might be eyeing this opportunity to buy more assets while prices are down.
Speaking of the current price, SOL is roughly hovering around $222, having dropped 6.55% in the past 24 hours. However, trading volume has increased by 101%, indicating that traders and everyone else are still quite active, keeping an eye on SOL.
For more insights into the cryptocurrency world, click on the avatar and follow me.
