200k SOL transferred to Binance, price decline underway

As Solana (SOL) becomes the fourth-largest cryptocurrency — flipping XRP and BNB in a week — a key indicator shows that a price drop could be underway.

According to data provided by the market intelligence platform Santiment, Solana’s Relative Strength Index (RSI) rose from 77 to 79 in the past 24 hours. When the RSI increases, it usually indicates an incoming price decline and selling pressure.

SOL price, RSI, open interest and Binance funding rate – Dec. 25 | Source: Santiment

For SOL to stay bullish, the RSI would need to cool down to the 60 mark before any further price surges.

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SOL is down by 1.2% in the past 24 hours and is trading at $113 at the time of writing. The asset’s market cap is standing at $48.3 billion, strongly holding the fourth spot after Bitcoin (BTC), Ethereum (ETH) and USDT.

Data shows a slight downward momentum in Solana’s daily trading volume, currently hovering around the $4.8 billion mark.

As the possibility of a further price decline surfaces, a whale has transferred 199,999 SOL tokens to the Binance crypto exchange.

🚨 199,999 #SOL (23,019,289 USD) transferred from unknown wallet to #Binancehttps://t.co/iogf5isYeS

— Whale Alert (@whale_alert) December 24, 2023

Per Whale Alert, the transaction is worth roughly $23 million and further movements haven’t been detected yet.

The movements come after Solana hit a 21-month-high of $117.3 on Dec. 24 after recording constant inclines over the past month. It’s important to note that SOL’s price registered a 94% rally in the past 30 days.

Data from Santiment also shows a 5% rise in Solana’s total open interest (OI) in the past 24 hours — rising from $1.36 billion to $1.42 billion.

According to the market intelligence platform, long-position SOL holders are slightly dominating the asset’s total OI. Per Santiment, Solana’s Binance funding rate currently stands at 0.012%.

Read more: Top cryptocurrencies to watch this week: MOVR, SOL, OP

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