Investors Acquire $35M in Solana, Bullish Trend Ahead

The Key Takeaways

In recent days, so-called “whales” (large investors) have acquired Solana (SOL) worth 35 million USD. This suggests growing confidence in the cryptocurrency. The technical data indicates that SOL is on the verge of breaking through key resistance levels, hinting at a potential price increase. At the same time, there are mixed signals from the on-chain analysis, pointing to cautious market sentiment.

Large Investors Bet on Solana

On October 28, 2024, blockchain tracker Lookonchain reported that three large investors withdrew a total of 202,400 SOL worth 35 million USD from centralized exchanges like Binance and Kraken. These investors have staked their acquired SOL tokens, suggesting they view Solana as a long-term investment. The largest transactions were made by wallet addresses “AA21BS,” “EHax,” and “EGzi,” with the largest single transaction involving 153,511 SOL worth 26.4 million USD.

Technical Analysis: Key Resistance Levels

Technical indicators show a bullish pattern for Solana. After breaking through an “inverse head and shoulders pattern,” SOL appears to be heading toward a key resistance level at 195 USD. If this resistance is breached, the price could rise toward the previous all-time high of 260 USD. The current price is supported by the 200-day Exponential Moving Average (EMA), indicating an upward trend.

Mixed On-Chain Signals

Although the technical data is positive, the on-chain metrics paint a mixed picture. According to the analysis platform Coinglass, SOL’s long/short ratio stands at 1.03, indicating slightly bullish sentiment among traders. However, open interest (open positions) has dropped by 7%, suggesting possible liquidation of short positions. If the price rises to 178 USD, short positions worth 16.7 million USD could be liquidated. Conversely, if the price drops to 172.9 USD, long positions worth 36.06 million USD could be affected.

Current Market Development

At the time of publication, SOL is trading at approximately 176.33 USD, representing a 1.2% increase in the last 24 hours. Trading volume has increased by 30% during this period, indicating heightened interest from traders and investors. The involvement of whales seems to play a central role in this.

Our Assessment

The recent purchases by large investors and the technical indicators suggest a positive outlook for Solana. However, investors should not ignore the mixed on-chain signals, as they point to potential volatility. It remains to be seen whether SOL can break through the resistance levels and possibly reach its all-time high. Careful monitoring of market sentiment and technical data will be crucial in the coming days.