Solana price rally could be interrupted, analyst identifies warning signs in SOL
- 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.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
