The cryptocurrency market has been experiencing increased fluctuations, with Bitcoin (BTC) teetering just below a significant support level around $92,000. Amidst this volatility, Solana (SOL), a prominent large-cap altcoin, has been on a downward trend. With a fully diluted valuation nearing $112 billion and an average daily trading volume of approximately $4.6 billion, Solana’s price has dropped over 12% in the past four days, settling around $191 as of Friday, January 10, during the European trading session.
This downturn has led to substantial liquidations in Solana’s leveraged market, amounting to nearly $20 million, primarily affecting long traders. Furthermore, Solana’s Futures Open Interest (OI) has decreased by roughly 2% within the last 24 hours, currently standing at approximately $5.79 billion.
Solana Whale Panic Sells
Recent on-chain data reveals that a significant Solana whale has been actively unstaking and transferring their holdings to the Binance exchange. Within the past 24 hours, this particular whale has unstaked 245,921 SOL and transferred 246,064 SOL to Binance. This move suggests potential profit-taking after Solana’s remarkable rally in 2024. The Solana network, known for attracting investors interested in passive income through its staking program, currently boasts around 1,238,071 active stakers. These stakers collectively hold approximately 393,252,393 SOL, with an estimated worth of $75 billion.
Midterm Expectations for SOL Price
Following a significant bullish breakout last November, which coincided with Donald Trump’s electoral victory, Solana’s price has been testing the support trend line on the daily chart. From a technical analysis perspective, Solana’s price is nearing a critical support level around $180. Maintaining this level is crucial in the coming days to prevent a potential selloff, which could see the price dip to the support range between $120 and $150.
As the cryptocurrency market continues to evolve, investors and analysts alike are closely monitoring these developments. The interplay between macroeconomic factors and market sentiment will likely influence Solana’s trajectory in the medium term. As always, market participants should remain vigilant and consider multiple factors before making investment decisions.
