Market sentiment suggests that the price of Solana (SOL) may drop to the $80 level. On August 31, 2024, on-chain analytics firm Lookonchain posted a message on X (formerly Twitter) that Crypto Whale of Institution dumped a significant 139,532 SOL worth $19.5 million to Binance for a loss of $5.5 million.
Solana Whale Sale 140K SOL
According to a post on X, the whale wallet address “FkVrB” initially unstaked 139,532 SOL worth $19.5 million and later deposited it to Binance two days ago. The data shows that the wallet address “FkVrB” purchased this significant SOL when it was trading at the $180 level in July 2024, possibly in anticipation of a spot Solana Exchange Traded Fund (ETF) in the United States.
Since then, SOL has failed to reach the $180 level and is currently looking bearish.
Solana Price Prediction
According to expert technical analysis, Solana (SOL) is currently trading at a crucial support level of $127. Moreover, it is trading below the 200 Exponential Moving Average (EMA) on a daily time frame, indicating a downtrend.
Based on the historical price momentum, when SOL reaches the $127 support level, it tends to see a massive upward rally. This time, there is a high chance that it can surge by 40% towards the $180 level.
However, if SOL fails to hold this support level and closes a daily candle below the $120 level, there is a high probability of SOL dropping towards the next support level at $80.
SOL’s Bearish On-Chain Metrics
Today’s CoinGlass SOL OI-weighted funding rate indicates that short sellers are heavily dominating and liquidating long positions. Currently, SOL’s OI-weighted funding rate stands at -0.0034%, indicating bearish sentiment and a price decline in the coming days.
According to data from CoinGlass, key liquidation levels are currently around $133.30 on the low end and $139 on the high end, indicating that traders are over-leveraged at these levels.
If sentiment remains bearish and SOL’s price falls to the $133.3 level, long positions worth nearly $60 million will be liquidated. Conversely, if sentiment changes and the price rises to the $139 level, short positions worth about $21.5 million will be liquidated.
Solana Price Analysis
At the time of going to press, SOL is trading around $135 and has experienced a modest price increase of over 1% in the past 24 hours. Meanwhile, open interest has dropped by 2% in the same period, indicating lower interest from traders amid the market downturn.
