Solana’s (SOL) Price Dips Amidst Exchange Transfer: What’s Next?

• A transfer of 179,999 Solana valued at $26.14M, pushed the token’s price below $140.
• Solana’s price has dropped by 5% in the last day and 27% over the past month.

Today, the cryptocurrency market witnessed a mixed performance with a negative bias, particularly impacting Solana (SOL), a token known for its remarkable transaction speeds and scalability.

Despite its advantageous features, Solana experienced a challenging period, reflected in a 5% decrease in its price over the past day and a 27% decline over the past month. This dip in value is concerning, especially considering Solana’s ability to handle thousands of transactions per second, making it an attractive choice for users and developers seeking efficiency and cost-effectiveness.

Solana (SOL) Entering the Bearish Zone?

One notable event contributing to Solana’s recent price movement was a significant transaction wherein a whale transferred 179,999 Solana tokens to the crypto exchange Binance. Following this transaction, the token’s price swiftly dropped below the $140 mark, signaling market volatility triggered by large-scale movements.

This transfer, valued at $26.14 million at the time, underscores the impact of such transactions on the token’s market value. Solana has faced selling pressure in the past due to similar transfers to exchanges, suggesting a vulnerability to further price slides if such activity persists.

However, a decrease in these transactions could potentially stabilize Solana’s value and even pave the way for a rebound. Currently, SOL is trading at $136.44 with a market cap of $61 billion. Additionally, Solana’s daily trading volume has declined by over 24% in the last 24 hours, reaching $2 billion.

Solana (SOL) Price Chart (Source: TradingView)

If Solana continues its downtrend, it may find support levels at $130, $128, and $125, potentially leading to a new bearish phase with tentative support at $120. Conversely, if Solana breaks through the $140 zone, it could encounter a new resistance level at $143, potentially initiating a further rally and paving the way for an upturn toward $148 and $153. This could establish a bullish sentiment for SOL.

Source