Despite significant volumes being transferred off exchanges, the struggle persists for Solana’s price. On May 13th, a staggering 23 million Solana [SOL] was moved to undisclosed wallets, as reported by Whale Alert. The first transaction alone amounted to $1.58 billion, indicating considerable activity within the Solana network.
While data indicates that participants are holding onto their Solana (SOL) tokens, the cryptocurrency still experienced a decline of 6.16%. However, an uptick in volume aligned with the current price trajectory might propel the token to reach $129.
Solana (SOL) Price Analysis: What’s Next for SOL?
Suspected to involve the same participants, another significant transaction involving 11 million Solana (SOL) tokens, valued similarly, was executed to another wallet. Subsequently, another sizable transfer of 1 million SOL occurred three hours later. Notably, none of these transactions were directed towards exchanges, suggesting they weren’t intended for immediate sale.
Despite the apparent HODLing strategy, SOL experienced a notable 6.16% decline in price, currently standing at $140. This decline underscores the challenges faced by the cryptocurrency amidst significant off-exchange transactions.
The trajectory of Solana’s native token remains a concern for both long-term investors and traders. One key metric under consideration is Solana’s on-chain volume, which stood at $1.44 billion according to Santiment’s data, showing an increase from the previous day. Rising volume amid price decreases might signal further downside potential, potentially leading SOL’s price to drop to $129.
However, a reversal in the volume trend towards new highs could potentially change the direction. In such a scenario, SOL’s price might attempt to reach $155. Therefore, both bullish and bearish scenarios are being closely monitored by market participants.
Solana (SOL) Price Outlook: Positive Signals Amid Negative Sentiment
As of the latest update, the Weighted Sentiment for Solana (SOL) remains negative, indicating a prevalence of pessimistic remarks. However, there’s a notable uptick in sentiment improvement, suggesting a potential shift towards more positive sentiment. If this trend continues, it could drive increased demand for SOL.
A sustained increase in sentiment could potentially invalidate the bearish prediction of a drop to $129. Instead, it could pave the way for SOL to rise to $155 in the near future. Additionally, there’s a growing Total Open Interest (OI), which currently stands at $1.46 billion. This increase suggests that buyers are becoming more aggressive compared to sellers.
While a rise in OI could indicate a forthcoming breakout for SOL, the current interest might not be sufficient to confirm a surge past the overhead resistance. Consequently, SOL’s upward movement might be limited in the short term, with a potential ceiling around $155.
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