- Solana price could decline to $49, according to an analyst who identified signs for a bearish trend reversal.
- SOL deposits to exchanges have climbed; large wallet addresses sent nearly $50 million in Solana to Binance and Kraken.
- SOL price is likely to shed its gains after yielding 30% weekly gains for token holders.
Solana price rallied to $68 for the first time since May 2022, on Thursday. The altcoin yielded 30% gains for SOL token holders over the past week. An analyst evaluated the Ethereum alternative’s price trend and identified warning signs for a bearish trend reversal in Solana.
Also read: Solana price has risen almost 400% since SEC labeled SOL a security, alongside ADA and MATIC
Analyst spots warning signs, predicts correction in SOL price
Pseudonymous crypto analyst behind the X handle, @Bluntz_Capital, commented on Solana’s price trend in a recent YouTube video. The analyst predicted a pullback in SOL on the daily timeframe. After yielding double-digit gains for holders over the past week, SOL price is likely to correct lower to the 38.2% Fibonacci level, from the bottom of the Elliott Wave pattern, at $49.
According to @Bluntz_Capital, Solana price is likely to decline to the $49 level since the wave pattern is complete.
The recent spike in SOL token deposits to exchanges is another factor that supports a bearish thesis for the Ethereum-alternative token.
Whales deposit SOL to centralized exchanges
Based on data from crypto intelligence tracker, Lookonchain, a whale wallet address "H4yiPh" unstaked 2.16 million SOL tokens worth $128M, on November 16. Of this, 312,868 SOL worth $18.56 million was deposited to Binance and Kraken.
Another whale wallet unstaked 505,034 SOL tokens worth $31.7 million on Thursday, and transferred 505,000 SOL worth $31.7 million out, most of which was deposited to Binance and Kraken.
A whale unstaked 505,034 $SOL ($31.7M) today and transferred 505K $SOL ($31.7M) out, most of which was deposited to #Binance and #Kraken.
— Lookonchain (@lookonchain) November 16, 2023
The whale still has 2.9M $SOL($184M) staked.https://t.co/pe5QVhXcYl pic.twitter.com/9jeCk6hGdd
The large volume deposits are likely to increase selling pressure on the Ethereum-alternative, driving SOL price lower.
At the time of writing, SOL price is $59.08 on Binance.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple's XRP breaks out of downtrend as RLUSD receives greenlight from New York regulators
Ripple's CEO Brad Garlinghouse announced on Tuesday that the company received a green light from the New York Department of Financial Services on the launch of its stablecoin RLUSD.
Could Google's supercomputer crack Bitcoin? Crypto community maintains positive outlook
Bitcoin faced mixed sentiments on Tuesday after crypto community members spoke on the potential of Google's new quantum chip Willow's ability to crack blockchain networks and render the security of public key cryptography useless.
Crypto Today: Microsoft Rejects Bitcoin Reserve Plan, as Cardano, XRP Lead Market Rebound
Amid an escalating geopolitical crisis, the global crypto market crash on Monday saw over $1.5 billion worth of liquidations, triggering double-digit losses across top-ranked digital assets.
Litecoin Price Prediction: LTC to hold $100 support as traders deploy $10M of leverage
Litecoin price broke below the $110 level on Tuesday, down 20% in a frenetic 24 hours as rising geopolitical risks triggered volatility across global crypto markets.
Bitcoin: Long-awaited $100K milestone meets profit taking
Bitcoin ends the working week hovering around $98,000 after a very volatile Thursday when it surpassed the $100K milestone and underwent a sharp correction. Strong institutional demand, whale accumulation, and the choice of a pro-crypto figure to lead the US SEC fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.