Solana (SOL) price struggles at $177! Is $150 coming soon?
Solana (SOL) is the fifth largest cryptocurrency by market capitalization, and its daily chart is sending warning signals that a downward momentum may emerge. On December 3, 2024, the sentiment across the cryptocurrency space seems bearish, making it difficult for assets to gain momentum.
Solana (SOL) Technical Analysis and Upcoming Levels
The technical outlook for Solana (SOL) does show some pressure, especially after breaking below the $227 support level, entering a bearish head-and-shoulders pattern. If the daily closing price indeed falls below $226, there is a risk of further retracement to the $200 support level. However, the 200-day EMA for SOL still shows a certain long-term upward trend, along with the RSI approaching oversold territory, suggesting a potential rebound in the short term.
In this clearly intensified market stage, investors should pay special attention to changes in key support levels and daily closing conditions, particularly as market sentiment and trading volume may affect the price action. If SOL falls back to around $200, it could present an attractive buying opportunity, especially for those optimistic about its long-term prospects.
$159 million SOL outflow
On-chain analysis firm Coinglass states that despite the bleak outlook, whales and institutions have shown strong confidence and interest in this altcoin. SOL's spot inflow/outflow data indicates that exchanges have witnessed a significant outflow of $159 million in SOL over the past four days.
In the world of cryptocurrency, the term 'outflow' is gaining increasing attention. Simply put, outflow refers to whales withdrawing their tokens from exchanges to private wallets, an action that is often interpreted as a bullish signal, suggesting a price increase may be forthcoming in the following days. Recently, SOL investors seem to be seizing this opportunity, actively acquiring more assets amid the market sentiment and price decline. For the crypto market, whale outflows often signify optimistic expectations for the future. As more tokens flow into private wallets, the number of tokens available for trading decreases, and this change in supply and demand dynamics may drive prices up. Therefore, SOL investors are likely increasing their positions now, anticipating this potential upward opportunity.
Current price momentum
As of the time of writing, SOL is trading close to $222, having dropped 6.55% in the last 24 hours. During the same period, trading volume surged by 101%, indicating increased participation from traders and investors compared to the previous day.
