Solana Whale Unstakes $14.3 Million in SOL: What’s Next for Price
beincrypto.com 13 September 2024 10:41, UTC A Solana (SOL) whale recently unstaked a massive amount of SOL coins and deposited them on Binance, likely signaling an intent to sell for profit as volatility in the Solana market intensifies.
With increasing bearish sentiment surrounding the altcoin, this major holder might have made a strategic move. Here’s why.
Solana Whale Puts Safety First
In an early Friday post on X, on-chain sleuth Lookonchain found that a Solana whale unstaked 106,213 SOL worth $14.3 million and deposited it into cryptocurrency exchange Binance.
This whale’s decision is noteworthy, as large transfers to exchanges often signal an impending price shift. Moving a substantial amount of coins to an exchange usually suggests the owner is preparing to sell, which can potentially affect the asset’s market price.
The spike in SOL market volatility may have driven this move. SOL’s Bollinger Bands (BB), a key indicator of volatility, support this view. The gap between the upper and lower bands, which measure market volatility, has widened over the past month.
As market jitters grow over the whale’s actions, derivatives traders have pulled back. In the past 24 hours, trading volume in SOL’s derivatives market has dropped 40%, while open interest has declined by 2%, reflecting a slight decrease in active participants.
However, those still trading are favoring long positions, as indicated by positive funding rate, currently at 0.0049%. This rate, a periodic fee paid to keep the contract price close to the spot price, suggests that more traders expect SOL price rally than those betting on a decline.
Read more: Solana (SOL) Price Prediction 2024/2025/2030
SOL Price Prediction: Long Traders May Have To Wait
The negative bias surrounding SOL suggests long traders may need to wait for their positions to pay off. As of this writing, SOL’s Parabolic Stop and Reverse (SAR) indicator shows bearish signals, with its dots positioned above the coin’s price.
This arrangement indicates a potential downtrend, as the SAR tracks trend direction and reversal points. When the dots are above the price, it typically signals that the asset is likely to decline.
Further reinforcing the bearish outlook, SOL’s Directional Movement Index (DMI) shows the negative directional indicator (-DI) above the positive directional indicator (+DI), highlighting stronger negative momentum. This suggests that SOL’s market trend remains in a downtrend.
Read more: 13 Best Solana (SOL) Wallets To Consider in September 2024
If this downtrend continues, SOL could break below the support level of $133.64, potentially falling to $110. However, if sentiment shifts to positive, the bulls may defend the support level. This will allow SOL to begin an uptrend toward $160.90.
