If Solana breaks below the $175 level, it may drop by 11%, reaching a level of $156.
Traders are overly leveraged, with a low end of $182.1 and a high end of $193.2.
By market capitalization, Solana [SOL] is the fifth-largest cryptocurrency in the world, and its value seems to be weakening due to ongoing market uncertainty.
Whale sells $45.7 million worth of SOL
During the market downturn, the blockchain-based trading tracker Whale Alert posted on X (formerly known as Twitter) that a cryptocurrency giant sold $45.76 million worth of 246,064 SOL to Binance.
As of now, the wallet address of this whale remains unknown, raising concerns among investors about a potential sell-off.
Additionally, when SOL's price reached the critical support level of $176 and the 200-day exponential moving average (EMA), Binance experienced a significant drop.
Technical analysis and key levels of Solana
This key support level is crucial for SOL. Expert technical analysis shows that if the altcoin breaks below the 200 EMA and closes below $174.5 on the daily chart, it is likely to drop by 11%.
There is a possibility of reaching a level of $156 in the future.
Conversely, if SOL successfully maintains above the 200 EMA, it may show upward momentum again, reaching the $220 level.
On-chain indicators are mixed.
According to on-chain analytics firm Coinglass, by analyzing SOL's market sentiment and technical outlook, it appears that investors and long-term holders are selling their assets to exchanges.
Data from the spot inflow/outflow indicator shows that SOL outflows from exchanges exceeded $61 million in the past 24 hours.
The capital outflow in this scenario indicates potential sell-off signals and may generate selling pressure, leading to further declines in the altcoin's price.
Main liquidation area
According to Coinglass data, the main liquidation levels are currently at $182.1 below and $193.2 above, with intraday traders overly leveraged at these levels.
If market sentiment remains unchanged and the price reaches $182.1, a long position valued at nearly $111.61 million will be liquidated.
Conversely, if sentiment shifts and the price rises to $193.2, a short position valued at approximately $14.19 million will be liquidated.
Combined with these on-chain indicators, it appears that traders holding long positions may be stronger than short sellers.
As of the time of writing, SOL's trading price is close to $192, with a slight increase of 1.10% in the past 24 hours.
However, during the same period, its trading volume decreased by 5.5%, indicating a decline in trader and investor participation compared to the previous day.