Dec 5, 2024
6thTrade
Solana (SOL) saw a significant price surge following Trump’s victory in the US elections, reaching a new all-time high of $263 on November 23. However, after losing some momentum, SOL has dropped more than 11% since then. Despite this pullback, large investors (whales) remain optimistic, continuing to accumulate SOL, while analysts predict the token could potentially rise to $600 in the current cycle.
Whale Activity Amid Price Correction
After its rally, Solana briefly ranked among the top four altcoins, surpassing BNB and XRP. However, the market has since seen a reversal, with XRP moving back into the third spot and Binance Coin regaining its position. Solana, along with Bitcoin (BTC) and Dogecoin (DOGE), has been consolidating for the past few weeks, trading 10-12% below its peak.
This price correction has presented an opportunity for large Solana investors to accumulate more tokens. According to Lookonchain data, multiple whale wallets have withdrawn substantial amounts of SOL from Binance to cold storage, a move often seen as bullish since it reduces immediate sell pressure.
In the past 24 hours alone, four whales withdrew 185,510 SOL ($42.46 million) from Binance, with one whale removing over 100,000 SOL ($22.46 million).
SOL Price Predictions: Potential for $600
Despite the recent retracement, analysts are bullish on Solana's long-term outlook. Popular analyst IncomeSharks noted that SOL’s price movements resemble a head and shoulders (H&S) pattern, cautioning of potential short-term retracement. However, they highlighted that SOL is approaching key support levels, particularly the Supertrend support, which has held since October. SOL recently bounced off this support and is now trading above $230.
Another analyst, Jelle, is even more optimistic, suggesting that Solana could see a price surge to $600 if it maintains its position above the previous all-time high of $225. Jelle pointed to the formation of a falling wedge pattern on the 25-day EMA and a retest of the RSI mid-level as indicators of a potential resumption in price discovery. His target range for SOL is between $400 and $600.
Conclusion
While Solana has faced recent price corrections, the continued accumulation by whales and the bullish technical patterns suggest a potential for significant price gains. With analysts predicting a rally to as high as $600, Solana remains a key asset to watch in the coming months.