Amid the current uncertainty in the market, Solana (SOL) is losing support and weakening as the market continues to decline.
A significant amount of 246,064 SOL, worth $45.76 million, was transferred to Binance by a crypto whale on January 10, 2024. This transfer indicates a potential sell-off and reflects investor sentiment, as they are hesitant to hold positions due to the continuous price decline over the past three days. SOL has experienced a price drop of over 16% during this period and has now reached a crucial support level.
Following the significant price decline, SOL has reached a crucial support level at $178, which aligns with the 200 Exponential Moving Average (EMA) on the daily timeframe. This level will determine the future of SOL in the coming days. If SOL breaches this support level and closes below $175, it could potentially decline by 11% to reach $156 or even lower. On the other hand, if sentiment shifts and SOL holds above $178, a similar upside rally may occur.
Not only this whale, but exchanges have also witnessed an outflow of over $60 million worth of SOL in the past 24 hours. Combined with the $45.7 million transfer, the market sentiment has seen a dump of $60.7 million worth of SOL.
Currently, SOL is trading near $182, with a price decline of over 7.95% in the past 24 hours. The trading volume has also dropped by 26% during the same period, indicating lower participation from traders and investors compared to the previous day.
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