Large Exchange Transfers Cause SOL Price to Drop to $143.86 – Potential for Further Decline if Sell Wall at $160 is Triggered
In a recent turn of events, a large exchange transfer of 179,999 Solana (SOL) tokens to Binance has caused a significant drop in the price of the cryptocurrency. The transaction, valued at $26.14 million, led to SOL’s price plummeting below $145, a level it had been holding onto for some time.
This transfer has sparked concerns among investors as it indicates a potential intention to sell, leading to selling pressure on the token. As a result, SOL’s price has experienced a 24.03% decline, trading at $143.86. If more transfers to exchanges occur, the price of SOL could slide further, while a decrease in these transactions could stabilize the value and potentially trigger a bounce.
Despite rising optimism in the market, the continuous price decrease is potentially bearish for SOL. Spot traders are aggressively selling, leaving perp buyers in disbelief. The aggregated Funding Rate for SOL is currently at 0.0006%, with shorts paying a recurring fee to long positions. However, a bounce off the current lows could change the situation for the better.
From a technical perspective, indicators suggest that bears are dominating the market. The Elder Force Index (EFI) has dropped into the negative region, indicating selling pressure, while the Relative Strength Index (RSI) is close to the oversold region. The Supertrend indicator has also flashed a sell signal around $162, suggesting potential resistance levels for SOL.
In order for SOL to see a price rebound, it would require a substantial level of buying pressure, which is currently lacking. For now, SOL’s price is expected to hover between $137.66 and $147.57 unless there is a shift in market sentiment. Traders and investors will be closely monitoring the situation to see how SOL’s price reacts in the coming days.
