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Whales Trigger a Huge Sell-Off: Solana (SOL) Price Rally Feared to Drop by 20% This Month
The price of Solana (SOL) has been trading within a narrow range, seemingly accumulating gains in preparation for a strong upswing. However, a recent trend observed on-chain suggests that the bears may soon take over, potentially triggering a massive sell-off that could see prices plummet as much as 20% this month.
According to data provided by Lookonchain, a prominent on-chain platform, large-scale Solana investors, known as whales, have begun dumping their tokens en masse. This sudden reversal in sentiment has sent shockwaves through the market, with the total value of SOL sold reaching an astonishing $46.3 million.
One whale, 4WRee, has offloaded a staggering 160K SOL worth approximately $16.5 million at a base price of $102. Another significant sale occurred when another whale, 5cPair, released nearly 89,734 SOL to the market at a price of $108.
These substantial selloffs have raised concerns that the current price rally may be about to come to an abrupt end. The data suggests that whales are now moving in the opposite direction they previously were, which could lead to an influx of sell orders and create a self-reinforcing downward spiral.
This sudden shift in sentiment comes as investors await crucial U.S. jobs data, which is expected to have a significant impact on market volatility. As such, it’s possible that the current price action may be more reactive than proactive, leading to heightened uncertainty for investors.
The recent drop of the Commitment Money Flow (CMF) below zero for the first time since March 2023 has also sparked concerns about weakness in the Solana market. This indicator is used to measure the flow of money entering and leaving an asset, and a reading below zero typically signals selling pressure.
In light of these developments, it’s crucial that investors take notice of the potential risks posed by this sudden reversal in whale activity. If the current support level at the 200-day weekly moving average (MA) is broken, the price could plummet as much as 20% to reach the ascending support and potentially trigger a rebound.
Currently, the SOL price is trading around $105, but if it fails to hold this range, the bears may gain more significant ground. This has sparked concerns that prices may drop to as low as $80 in the coming days.
Source: https://coinpedia.org/price-analysis/whales-trigger-a-huge-sell-off-solana-sol-price-rally-feared-to-drop-by-20-this-month/
