Solana (SOL) has experienced significant volatility recently, with a large crypto whale dumping over $21 million worth of tokens. Despite this, the altcoin appears to be holding steady and could see a strong recovery if it maintains key support levels. Traders and analysts are closely monitoring Solana’s price action, especially its ability to sustain $175 as a critical support level. If it does, SOL might rise by 22%, targeting a potential price of $220.
On one recent occasion, a major whale sold 122,620 SOL tokens, amounting to $21.75 million, on the Kraken exchange. This large dump on January 13 caused Solana’s price to dip below its crucial support of $175, briefly reaching the $168 mark. The sudden price drop led to some bearish sentiment in the market. However, Solana quickly rebounded, climbing back above the $175 support, which is now seen as a key indicator of whether SOL will remain bullish or face further declines.
Whale movements can have a significant impact on the market, especially when such large transactions are involved. The recent sell-off shows how vulnerable Solana’s price can be to major holders moving their assets. Nonetheless, the recovery above $175 suggests that investor sentiment is stabilizing, and many see this as a potential opportunity for buying the dip.
Technical analysis indicates that the $175 support level is crucial for Solana’s short-term price action. As long as the price stays above this level, SOL remains in a bullish trend with the potential to surge by 22%, reaching as high as $220. This projection is based on the idea that Solana will consolidate above $175 and push higher, fueled by positive sentiment and increasing demand.
Currently, Solana is trading around $183.3, reflecting a 2.5% decline over the last 24 hours. Despite the dip, its trading volume has increased by a staggering 240%, signaling that more traders are engaging with SOL, likely drawn to its lower price point. This increased volume is a strong sign of market interest and could drive further price action if it continues.
For intraday traders, $193 is a crucial resistance level. If Solana can manage to close an hourly candle above this price, a breakout could occur, potentially sending the price up by 7% to the $207 mark. This price surge would help restore confidence in SOL’s upward momentum and could lay the foundation for a larger rally.
However, the bullish thesis for Solana depends on the altcoin holding above the $175 support. If the price fails to stabilize at this level and falls below it, the market could shift to a more bearish outlook, resulting in further declines.
There are several key technical indicators that suggest Solana could be on the cusp of a recovery. Despite recent volatility, SOL has held above its 200 Exponential Moving Average (EMA) on the daily chart. The 200 EMA is an important long-term trend indicator, and its current position above the price suggests that Solana remains in an overall uptrend.
Additionally, Solana’s Relative Strength Index (RSI) is nearing the oversold zone. The RSI is a popular indicator used to identify potential price reversals, and when it enters the oversold region, it often signals that an asset could be undervalued. This could mean that Solana is primed for a price rebound, especially if buying pressure begins to increase.
Solana’s short-term price movement will largely depend on whether it can maintain the $175 support level. If SOL stays above this threshold, it could experience a 22% surge toward $220. The increasing trading volume, combined with technical indicators like the RSI and the 200 EMA, suggests that Solana may have more room to run if market sentiment turns more positive.
The key factor for traders and investors to watch is how Solana behaves around the $175 support. If the price continues to consolidate and break through resistance levels, the $220 target becomes increasingly achievable. However, failure to hold this level could result in further price declines, with potential support levels being tested at lower prices.
Solana’s price is at a critical juncture. After a whale-driven sell-off, SOL has managed to rebound and hold above the $175 support, signaling potential for recovery. If the price can stay above this level, Solana could surge by 22% to reach $220 in the near future. Key technical indicators such as the 200 EMA and RSI are showing signs of a possible rebound, suggesting that a bullish scenario is still on the table. However, Solana’s short-term performance will depend heavily on whether it can maintain this crucial support level and break through resistance at $193.
For investors, it may be worth watching these key levels closely as the market evolves. If Solana can hold strong and rally above $193, the path to $220 could be wide open.
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