Will Solana Price Recover as Whales Accumulate $1.7M SOL?

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As a seasoned researcher with years of experience under my belt, I have witnessed numerous crypto market fluctuations, and I must admit, the recent Solana price dip was a fascinating study for me. The increased whale activity, as confirmed by Coinshare data, is a clear indicator of investors’ confidence in SOL.

Amidst a downturn in the crypto market, the value of Solana dropped to a monthly minimum earlier today. However, it has since displayed signs of rebound, making it one of the initial cryptos to recover from the dip. This suggests that investors have a keen interest in Solana, as evidenced by its recovery process. Here’s an overview of how this recovery is unfolding.

Whale Jumps On Solana Price Dip

1) According to Coinshare data, there’s been a surge of whale activity over the past few days. Last week alone saw Solana inflows reach an impressive $1.7M, indicating that investors are becoming more inclined to ‘buy the dip.’ This trend persists this week as well, with the token’s trading activity remaining elevated. It’s worth noting that whale involvement has significantly increased this week, suggesting that investors are trying to get ahead of the market, which is expected to enter a bull phase around mid-2025.

SOL price hit the ATH at $263.83 in November, keeping the investor’s enthusiasm for the further rally. As a result, the whales jumped on the opportunity when the Solana price moved 29% away from that with the crypto market crash. During this period, Solana’s performance collapsed to a month low of $177.21, but analysts call it a retest rather than a drop.

Solana Retest Begins, SOL Price Up 9% Today

In November, Solana experienced an extremely positive surge, reaching new all-time highs in price and boosting its user base significantly. According to Glassnode’s relative capital flow report, 53% of global cryptocurrency users were utilizing the network during that time. It’s worth noting that Solana outperformed both Bitcoin and Ethereum in various key metrics, but a recent dip in price has caused some unease among users. Nevertheless, several crypto analysts view this as a regular breakout followed by a retest, which is already underway. Furthermore, they consider it a healthy aspect of the trend rather than a bearish sign.

Indeed, the SOL price trends align well with the theory we’re considering, since the price has climbed by 9% today, reaching a current level of $195.73 and boasting a market capitalization of approximately $93.8 billion. The buying enthusiasm is growing, especially with whales getting involved. However, this is just the start, as technical indicators suggest potential signs of a full recovery ahead.

Solana Price Technical Analysis

According to Solana’s graphs, there seems to be a strong recovery bounce happening around the crucial support near the 200-day Simple Moving Average (SMA). This situation presents an opening for the SOL price to climb over the Volume Weighted Average Price (VWAP), which has been established since the September low. After careful analysis, crypto experts believe that Solana might seize this chance and join the bullish trend by recovering its value.

Moreover, the analysts observe the 4-hour oscillator trending upward, reinforcing their analysis. This suggests that the next resistance could be found at the 5-day Simple Moving Average (SMA). A break above this level would indicate continued bullish momentum.

What’s Next?

As an analyst, I’ve noticed that despite recent warnings about potential Bitcoin crashes from experts, I believe altcoins such as Solana and others are poised to keep rising with a growing bullish sentiment among the whales. Today, Solana has seen a 9% surge, yet its All-Time High (ATH) remains 29% away, even though it was set just a few days ago. This phase is being referred to as a ‘breakout and retest’ period where the dominance of altcoins could become more pronounced in April-May. During this time, we might witness a significant rally for altcoins, potentially reaching a 5x to 10x increase once Bitcoin consolidation creates opportunities for other cryptocurrencies.

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2024-12-21 15:19