Solana (SOL) Price Surges Amidst Market Turbulence, Driven by Whale Movements

Solana (SOL) experienced a sudden price surge amid a period of market turbulence. As Bitcoin struggled to regain ground and breach resistance levels

Solana (SOL) experienced a surprising price surge amid broader market turbulence. As Bitcoin struggled to fully recover and break through crucial resistance levels, Solana took an unexpected turn.

Following a period of consolidation, Solana’s price showed a sudden increase, diverging from the broader cryptocurrency market. This uptick was largely driven by substantial whale movements, as evident from on-chain data analysis.

According to LookonChain, several large whale accounts withdrew a total of over $7.5 million in SOL from Binance, a leading centralized exchange (CEX). This significant move helped to quickly boost Solana’s price, aiding it in surpassing the critical psychological resistance level of $145.

However, despite this momentary success, the token struggled to break through the $150 barrier, which could indicate that the rally may not be as robust as initially anticipated.

Furthermore, five whale accounts unstaked a massive 5.52 million SOL, equivalent to about $810 million, over just 12 hours. Among this large amount, 3.54 million SOL was moved to Coinbase Prime.

Typically, a sudden increase in unstaking activity, especially when large amounts are involved, signals a potential rise in selling pressure. This occurs as large holders, also known as whales, prepare to liquidate significant portions of their holdings.

The movement of such a large sum of Solana to centralized exchanges (CEXs) usually results in market fluctuations. In this case, it has raised questions about the sustainability of the token’s price recovery. Many traders are closely observing these developments to determine whether it marks the beginning of a broader recovery or if it’s a temporary rally influenced by short-term factors.

After hitting recent lows near $125, Solana’s price appears to be running out of steam. The token is currently trading within a range of $138, where support is located, and $145, where resistance is present. This range suggests that Solana may undergo a period of consolidation in the near term, rendering it capable of bouncing back from lower levels but also preventing it from decisively breaking out to the upside.

Key technical indicators present a mixed view of Solana’s market status. The Relative Strength Index (RSI) has shown a bearish divergence, signaling that buying momentum may be decreasing.

Moreover, the Chaikin Money Flow (CMF) remains below the zero level, indicating that buying pressure is still insufficient to push the token higher. However, the Moving Average Convergence Divergence (MACD) shows a decrease in selling volume, and a potential bullish crossover could signal a more substantial move upward in the near future.

Looking ahead, Solana’s price is likely to remain confined within the $138-$145 range, providing ample opportunity for a short-term consolidation phase.

If the price manages to stay above the $145 resistance-turned-support level, there is a chance that it could attempt another rally. However, for any sustained upward movement, the token would need to overcome significant resistance around $150.

If the MACD signals a bullish crossover, it could trigger a breakout above these key levels, allowing Solana to push past its current consolidation phase.

On the other hand, continued whale activity and increased selling pressure may force the token to remain within its current range for a longer period, keeping the market in a state of uncertainty.