According to an analyst's assessment of bearish trend reversal indicators, there is a possibility that the price of Solana may see a decrease to $49.
Deposits of SOL tokens to cryptocurrency exchanges have experienced a notable increase, with substantial sums of about $50 million worth of Solana being transferred from sizable wallet addresses to prominent platforms such as Binance and Kraken.
It is probable that the price of $SOL will see a decline subsequent to its recent increase of 30% within a week, resulting in a reduction in gains for those holding the token.
On Thursday, the price of Solana experienced a significant surge, reaching $68 for the first time since May 2022. The alternative cryptocurrency saw a 30% increase in value for anyone who possessed SOL tokens over the previous week. The price trajectory of Solana, an alternative to Ethereum, was assessed by an expert who saw indications of a potential negative trend reversal.
The analyst has identified indicators that suggest potential risks and anticipates a drop in the price of SOL.
The crypto analyst known as @Bluntz_Capital, who maintains a pseudonymous identity, provided commentary on the price trajectory of Solana in a recent video on the YouTube platform. The expert made a forecast of a decline in the SOL cryptocurrency's value on the daily chart. Following a notable increase in value, resulting in a percentage gain in the double digits for investors over the previous week, it is anticipated that the price of SOL will have a downward correction towards the 38.2% Fibonacci retracement level. This retracement level is determined by measuring from the lowest point of the Elliott Wave pattern and is estimated to be at $49.
The increase of SOL token deposits to exchanges in recent times serves as an additional element that reinforces a pessimistic perspective about the Ethereum-alternative currency.
Whales engage in the process of depositing their SOL tokens into controlled exchanges.
According to data obtained from Lookonchain, a crypto intelligence tracker, an address associated with a whale wallet, identified as "H4yiPh," recently withdrew 2.16 million SOL tokens valued at about $128 million on November 16th. A total of 312,868 SOL, valued at $18.56 million, was placed into the Binance and Kraken platforms.
On Thursday, an additional whale wallet unstaked a total of 505,034 SOL tokens valued at $31.7 million. Subsequently, the wallet transferred 505,000 SOL tokens, also valued at $31.7 million, with the majority of the funds being placed into Binance and Kraken.
The substantial influx of deposits is expected to intensify the selling pressure on the Ethereum-alternative, hence exerting downward pressure on the price of SOL.
#Solana #WhaleAlert
