A prominent whale has sold a staggering 594,000 SOL, valued at $86 million, since the start of the year.
This large-scale unloading has taken place across major exchanges like Coinbase, Binance, and OKX, with the whale averaging one sale per week. The most recent transaction occurred just yesterday, signaling continued selling pressure on Solana.
A whale sold 594K $SOL($86M) this year!
Since Jan 15, this whale has deposited 594K $SOL($86M) to #Coinbase, #Binance, and #OKX, averaging one sale per week.
The last sale was 16 hours ago.https://t.co/v6mJegPKCa pic.twitter.com/5CU24VPvtt
— Lookonchain (@lookonchain) August 13, 2024
Technical analysts are keeping a close eye on Solana’s price movements. Ali Martinez, a well-known crypto analyst, suggests that Solana might be forming a head and shoulders pattern on the hourly chart. This pattern is typically bearish, indicating that if SOL drops below the critical $141 support level, it could trigger a correction that pushes the price down to $122.
#Solana could be forming a head and shoulders pattern in the hourly chart, which suggests that a drop below $141 might trigger a correction that sends $SOL to $122! pic.twitter.com/o39Vn0FY8z
— Ali (@ali_charts) August 12, 2024
Solana At $1000 Could Be Close Once It Follows This Pattern
Despite the bearish signals, some analysts remain optimistic about Solana’s long-term potential. According to a popular analyst on X, Solana’s current price chart bears a striking resemblance to Ethereum’s chart in late 2020, just before ETH skyrocketed to new all-time highs. If Solana follows a similar trajectory in this bull market, a $1,000 SOL target could be within reach.
The current $SOL chart looks incredibly similar to what $ETH did in late 2020 prior to sending to new ATHs.
If Solana manages similar growth from the previous ATH that ETH did last cycle during this bull market, $1K SOL is a reasonable target. pic.twitter.com/JYqaLtomUs
— K A L E O (@CryptoKaleo) August 12, 2024
While the recent whale activity has sparked concern among some investors, others see it as part of the natural ebb and flow of the market. The possibility of Solana retracing to $122 in the short term is being weighed against the potential for significant gains if the broader market rally continues.
As Solana’s price action unfolds, investors will be watching closely to see if the bearish head and shoulders pattern plays out or if SOL can defy expectations and replicate Ethereum’s previous bull run, potentially reaching new heights.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Image Source: alexandarilich/123RF // Image Effects by Colorcinch
