Cryptocurrency tracking platform Whale Alert reported that approximately $160 million worth of Solana (SOL) was transferred to Coinbase in four transactions. According to the data, all transactions occurred within the same period. Typically, when whales move a large number of tokens, the affected cryptocurrency experiences a drop in value.
Whale Activity in Solana
This is often because the intention is usually to sell. However, this is not the case for SOL. At the time of writing, Solana’s price was $196.37, which was the same as 24 hours prior. The cryptocurrency’s stable value could indicate that the whale has not yet sold the tokens. If the situation continues, the price of the token could fall. If selling pressure is high, SOL’s value could drop below $190. According to cryptocurrency analytics firm Santiment, development activity on the network has dropped to 10.55.
Development activity tracks general GitHub repositories dedicated to a project. An increase in this metric could mean that developers are contributing code to ensure the network’s smooth operation. However, a decrease in the measurement indicates a reduction in features being sent on the network. Regarding sentiment around SOL, this situation suggests that participants may be inclined to a bearish stance on the token. Chain data shows that the weighted sentiment has climbed from the negative zone. This data could imply that comments about SOL are mostly positive. If this continues, the anticipated decline may not last long.
Current Data on SOL
If sentiment continues to improve, SOL could rise above $210. At the time of writing, the 9 EMA had crossed above the 20 EMA. Generally, this could indicate an uptrend. However, SOL’s price was on the verge of falling below the EMAs at the time of writing. If this happens, SOL’s bullish thesis could be invalidated. Additionally, the Relative Strength Index (RSI) showed a decrease in buying momentum. If the reading continues to fall, SOL’s recovery could be difficult.
Looking at the On Balance Volume (OBV), the data seemed to have stalled. This could mean that buying pressure is almost non-existent. However, the data also did not support intense selling pressure. When all these indicators are combined, it could be considered that Solana may not be ready for an upward trajectory. Instead, the token’s price could move sideways. In a scenario with high bullish momentum, SOL’s price could move towards $210. However, a bearish thesis for SOL could see the cryptocurrency’s price drop to as low as $171.
