Despite an impressive 80% monthly rally in December that propelled its market cap to the fourth position among all cryptocurrencies by size, the price of the Solana (SOL) token experienced a post-Christmas dip, falling to $107.
This recent price increase of Solana has piqued the interest of investors looking for a potential entry point into this cryptocurrency, as it demonstrates the potential for further gains in value.
A substantial surge characterized by a remarkable increase of over 500% within two months has been observed. Notably, a rotation trend is evident, with a shift towards Ethereum (ETH) and other ecosystems, suggesting a potential pause in the current momentum for Solana.
In higher timeframe trading, there is a keen interest in long-term entries at $70-80. This strategic approach suggests careful consideration of price levels for establishing enduring positions in the market, in line with the insight provided by esteemed crypto expert Michael van de Poppe on December 28.
On the possibility of further retracement by this asset, the next ideal entry point for long-term positions would be $60.
SOL Whale Activity as an Example:
With the increase in the price of SOL, some long-term holders are deep in the green zone, and one of them decided to cash out his profits.
A substantial deposit of 303,756 SOL, equivalent to $32.8 million, was recently made by a prominent investor, commonly referred to as a “whale,” into Binance. This transaction has prompted speculation within the cryptocurrency community, suggesting that the move may have been executed to capitalize on potential profits through subsequent sales.
The same whale conducted significant withdrawals in the preceding month, removing an impressive 423,754 SOL valued at $28.18 million from Binance at $66.5 per SOL. Despite these withdrawals, the whale retains a substantial stake of 119,998 SOL, currently staked, resulting in a profit exceeding $17 million, as noted by blockchain analytics platform Lookonchain.
SOL Price Analysis:
At the time of the press, SOL was trading at $107.60, with an increase of 2.12% over the past 24 hours and gains of 16.01% over the past 7 days, showing a notable 81.04% change over the past month.
Technical indicators for Solana, sourced from TradingView, reflect bullish sentiments, with a summary of the indicators indicating a ‘strong buy’ rating at 16, with moving averages signaling a ‘strong buy’ at 14 and oscillators confirming a ‘buy’ rating of 2.
Investors are urged to bear in mind that the content on this site should not be considered investment advice. Investing in cryptocurrency is speculative, and as such, your capital is always at risk.
