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Will Solana (SOL) Soon See a Massive Pump in Value After a Whale Transfers $372 Million?
"Whales" are major investors of Solana (SOL) who recently organized six huge transactions using SOL valued more than $500 million in under 24 hours.
Although 1.6 million SOL tokens, or about $230 million, were sent to a Coinbase-linked wallet, which may indicate a sale intent, 80% of the transactions included transfers between anonymous wallets, which is more indicative of asset management than a mass sell-off.
The continuing meme currency fever has driven a spike of activity on the Solana network, even though the price of SOL has just declined. It seems that there is still a lot of interest in SOL, even with the whales moving about.
Because market participants are split over fears of selling pressure and hopes for the network's continued activity, it is impossible to say how these transactions will affect the price of SOL in the long run.
The 4-hour chart shows that Solana (SOL) is presently trading at $144.36, and it is positioned inside a declining channel. The initial line of resistance and the immediate pivot point are both located at $145.56. If SOL manages to climb above this level, it may face more hurdles at $152.11 and $157.66.
On the other hand, $139.72 is the level of urgent assistance. If this level is not maintained, a further drop into $132.31 and perhaps $126.77 might be in store.
At its present level of $151.77, the 50-day Exponential Moving Average (EMA) serves as a strong level of resistance. With SOL's price still below this EMA, a negative trend is likely to continue for the foreseeable future.
Presently, SOL is approaching oversold territory, as indicated by the Relative Strength Index (RSI) which is at 40. The price is now below the 50-day exponential moving average (EMA) and is part of a falling channel, so although this might set off a comeback, the trend is still negative.
In conclusion, Solana's price forecast is still negative below 145.50 and positive above 145.50.
