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$201M SOL dump hits market: Can Solana avoid a slide to $120?
Solana’s dismal performance has been fueled by the recent dumping of 1.44 million tokens worth $201 million by Forward Industries into Coinbase Prime, heightening the possibility of a further decline in the cryptocurrency’s value.
Over the past two months, SOL has been plummeting, with its value having dropped by almost 50%. The asset has now entered a downtrend and appears to be poised for continued downward momentum.
The recent activity from Forward Industries, which is the largest holder of SOL with approximately 6.9 million tokens or roughly 1.119% of the total supply, has sparked concerns about a potential price crash.
As of today, SOL’s price has taken a hit of around 3%, trading at $137.90 after a sharp decline to a low of $128 in the past day.
A technical breakdown below the key support level of $155 has reinforced the bearish momentum that Solana is currently experiencing.
The Chaikin Money Flow (CMF) indicator for SOL has reached -0.18, signifying sustained selling pressure and weak capital inflows as sellers continue to dominate the market.
Furthermore, the Supertrend indicator continues to signal a downtrend with strong selling pressure above the asset’s price.
Despite these dismal indicators, there are signs that suggest a reversal in sentiment may be near.
Rising accumulation and leveraged positions near $128.9 and $140.5 hint at traders preparing for a rebound.
In essence, traders are increasingly using derivatives to bet on SOL reaching higher levels as they accumulate the cryptocurrency, potentially setting the stage for a price increase.
CoinGlass data shows that exchanges across the crypto landscape have recorded an outflow of SOL worth $39 million over the past 48 hours, indicating that traders are preparing for a reversal.
This outflow may indicate accumulation and potential buying pressure near key levels like $128.9 and $140.5.
Source: ambcrypto.com
