In this market downturn, traders and investors have liquidated over $1.08 billion worth of long and short positions in the last 24 hours. This massive liquidation has created fear across the cryptocurrency landscape.
Whales/investors transfer 2.38M SOL to CEXs
Amid this fear, investors and whales have transferred a significant 2.38 million Solana (SOL) worth $307 million to Centralized Exchanges (CEXs) including Binance and Coinbase in the last 24 hours, according to data from blockchain-based transaction tracker Whale Alert.
This notable transfer has not only caused a price decline in SOL but also led to a major breakdown of a crucial support level of $118.
Solana price analysis
At press time SOL is trading near $126 and has experienced a price decline of over 10% in the last 24 hours. Meanwhile, trading volume has skyrocketed by 235% during the same period. This massive increase in trading volume indicates a higher participation from traders and investors.
Looking at this ongoing activity, a former Coinbase angel investor made a post on X (previously Twitter) that SOL is not falling naturally, rather, it is being pushed down by some whales by creating fear in the market. In the post, he also noted that due to panic, noobs sell off their holdings and allow the whales to buy back at a lower level.
Dear noobs, $SOL is NOT naturally going down. It is being pushed down via whales placing spoofy sell orders on exchanges to make noobs and risk managers sell to ‘buy back lower’. They are stealing your bags and will make you buy back at a higher price.
— mert | helius | hSOL (@0xMert_) August 5, 2024
Solana technical analysis and upcoming levels
According to expert technical analysis, SOL has returned above the support level after experiencing a crucial breakdown. This recovery above the breakdown level has reduced the risk of a significant price decline.
Today, if SOL maintains itself above and gives a daily candle closing above $125, there is a high chance of a price reversal. However, if SOL fails to hold this level and gives a candle closing below the $118 level, it could potentially sink to $83 in the coming days.
