Despite significant price movements over the past 24 hours, Solana (SOL) has maintained its crucial support at $175. However, this volatility has caused some whales to lose confidence and dump their assets, impacting the market today.
Crypto Whale dumps $22 million in SOL
On January 13, 2024, Whale Alert, a blockchain-based transaction tracker, posted on X (formerly Twitter) that a crypto whale had dumped 122,620 SOL tokens worth $21.75 million on the cryptocurrency exchange Kraken. However, the wallet address remains unknown.
This notable dump was observed in the market as SOL dropped below the crucial USD 175 support level and approached the USD 168 level. This initially changed market sentiment and indicated that SOL had left the crucial support level, signaling bearish price action. However, as sentiment cooled, SOL recovered above the support level and appears to be recovering.
Solana (SOL) Price Action and Key Level
According to expert technical analysis, the key level for SOL in the coming days is $175. SOL remains bullish as long as it holds this support level. If the price continues at this level, there is a good chance that the price could increase by 22% and reach $220 in the future.
Currently, the altcoin has returned to its consolidation zone, where it has remained for the past four trading days. For intraday traders, if SOL closes an hourly candle above $193, there is a good chance that there will be a price increase of over 7% to reach $207.
However, Solana’s bullish thesis will only hold if SOL holds itself above the $175 level, otherwise it could fail.
Bullish signal from technical analysis
On the plus side, despite this price drop, SOL has held itself above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating an upward trend.
Additionally, SOL’s Relative Strength Index (RSI) is near oversold territory, indicating a possible price recovery that traders and investors are anticipating.
Current price momentum
Currently trading around $183.3, SOL has experienced a price drop of over 2.50% in the last 24 hours. However, during the same period, trading volume increased by 240%, indicating greater participation from traders and investors, possibly driven by SOL’s current discounted price.