The cryptocurrency market has been experiencing significant fluctuations, particularly with Bitcoin (BTC) testing critical support levels close to $92,000. As a result, Solana (SOL), a major player in the altcoin space, has seen its value decline. With a fully diluted market valuation of approximately $112 billion and a daily average trading volume of around $4.6 billion, Solana has experienced a notable price drop. Over the past four days, the altcoin has decreased by more than 12%, reaching approximately $191 during the mid-European trading session on Friday, January 10.
This downturn has led to the liquidation of nearly $20 million from Solana’s leveraged market, predominantly affecting long traders. Furthermore, Solana’s Futures Open Interest (OI) has seen a reduction of around 2% in the past 24 hours, settling at approximately $5.79 billion at the time of writing.
Solana Whale Panic Sells
Recent data analysis indicates a significant movement by a major Solana whale, who has been unstaking and transferring large quantities of SOL to the Binance exchange. In the last 24 hours alone, this whale unstaked 245,921 SOL and deposited 246,064 SOL on Binance, likely capitalizing on the substantial rally witnessed in 2024.
The Solana network is largely comprised of investors keen on generating passive income through its staking program. According to data from Solanacompass, there are approximately 1,238,071 active stakers on the Solana network, with a total staked amount of 393,252,393 SOL, valued at about $75 billion.
Midterm Expectations for SOL Price
Following an impressive bullish breakout from last year’s consolidation in November, coinciding with the political victory of Donald Trump, Solana’s price has been testing its support trend line on the daily chart. From a technical analysis perspective, the current price action of Solana is approaching a critical support level near $180. It is imperative for this support to hold in the coming days to prevent a further decline into the support range of $120 to $150.
Investors and traders are closely monitoring these technical levels, as the outcome could significantly influence Solana’s midterm price trajectory. The evolving market conditions and investor sentiment will play a crucial role in determining whether Solana can maintain its current support or if it will face additional downward pressure.
As the cryptocurrency market continues to evolve, staying informed about the latest trends and developments is essential for making informed investment decisions. Keep an eye on market updates and expert analyses to navigate the volatile crypto landscape effectively.
