Despite notable price fluctuations in the last 24 hours, Solana (SOL) has managed to hold its critical support level at $175. However, the increased volatility has caused some whales to lose confidence, leading to a sell-off of their holdings, which has impacted the market today. Get a comprehensive guide about Solana (SOL) Price Prediction from Daily Crypto Signals.
On January 13, 2024, Whale Alert, a blockchain transaction tracker, reported on X (formerly Twitter) that a crypto whale had sold 122,620 SOL tokens, valued at $21.75 million, on the Kraken Cryptocurrency Exchange. The wallet address associated with the transaction remains unidentified.
This notable dump was witnessed in the market when SOL fell below its crucial support level of $175 and approached the $168 level. This initially shifted market sentiment and indicated that SOL had broken down from its crucial support level, signaling bearish price action. However, as sentiment cooled down, SOL rebounded 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 upcoming days is $175. SOL remains bullish as long as it holds this support level. If it sustains this level, there is a strong possibility that it could soar by 22% to reach $220 in the future.
Currently, Solana (SOL) 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 the $193 mark, there is a strong likelihood of a price surge, potentially reaching the $207 level, reflecting a gain of over 7%.
However, the bullish outlook for SOL will only remain intact if it stays above the $175 support level. A drop below this could undermine the bullish thesis.
Bullish Signal from Technical Analysis
On the positive side, despite the recent price decline, SOL continues to hold above the 200 Exponential Moving Average (EMA) on the daily timeframe, signaling an ongoing uptrend. Furthermore, SOL’s Relative Strength Index (RSI) is approaching the oversold region, suggesting that a price recovery may be on the horizon, which many traders and investors are closely watching.
Current Price Momentum
At present, SOL is trading around $183.30, having experienced a decline of over 2.50% in the past 24 hours. However, during the same period, its trading volume surged by 240%, indicating increased market participation, possibly driven by SOL’s current discounted price.