Price Decline Overview:
Solana ($SOL ) has recently experienced a notable drop, declining by almost 11% within a week. The cryptocurrency failed to overcome the $220 resistance level, leading to a sharp fall below the significant $200 mark, intensifying bearish sentiment.
Whale Accumulation Trends:
Despite the ongoing price drop, whale investors have begun accumulating SOL again. From December 28 to January 2, there was a decrease in the number of addresses holding at least 10,000 SOL, falling from 5,096 to 5,025, indicating sell-offs by large holders. However, this trend reversed between January 2 and January 8, as the number of such addresses climbed back to 5,098, suggesting renewed interest from major investors.
Bearish Market Signals:
Key technical indicators suggest that the bearish trend for Solana is strengthening. The Average Directional Index (ADX) has risen to 42.6, highlighting a growing downtrend. Additionally, the Directional Movement Index (DMI) shows a steep decline in buying pressure, while selling pressure has surged, reinforcing the bearish momentum in the market.
Potential Price Recovery:
Solana faces potential further declines if it fails to maintain the $185 support level, with $176 as the next target. However, the recent accumulation by whales could provide a foundation for a price recovery. If bullish momentum resurfaces, SOL might test the $197 resistance and possibly climb back toward $211, reflecting a potential recovery of around 12.8%.
Conclusion:
While the short-term outlook for Solana appears bearish, the increase in whale activity could indicate a shift in market sentiment, paving the way for a possible rebound.
