Solana (SOL) Might Reclaim $160, But This Needs to Happen First

Solana (SOL) is fighting for survival in a visibly tense market. The drawdown in the market has suppressed SOL from breaking away from its psychologically important level of $160. At the time of writing, data from CoinMarketCap pegs the price of Solana at $155.53.

Solana whale FUD not going away

Solana has long been associated with whales moving large amounts of SOL in and out of exchanges. Notably, investors and retail traders do not know when the next major dumping will take place. This has generally kept Solana on the edge as HODLers do not want to get caught up in the mix.

According to recent data from crypto analytics provider Whale Alert, an unknown Solana whale moved 260,931 SOL worth approximately $40,502,770 from an unknown wallet to Kraken Exchange. This sort of whale movement is often indicative of a sell-off.

🚨 🚨 260,931 #SOL (40,502,770 USD) transferred from unknown wallet to #Krakenhttps://t.co/cRj1pULLC4

— Whale Alert (@whale_alert) May 7, 2024

While it remains unknown whether or not this whale is planning a sell-off, the current market sentiment is bearish and might weaken investors’ resolve to keep betting on SOL. This shaky sentiment is playing out in the price of the coin.

From a year-to-date (YTD) high of $209.7, Solana has retracted to its current level after dropping as low as $119 earlier this month.

Defeating bears

Solana is on the watchlist of many traders, and the push to grow might not set in if the bearish whale transaction push does not die down in the near term.

Solana is already free from the influence of the FTX Derivatives Exchange implosion. With the trading platform owning a large stack of Solana, its successive auctions have alleviated concerns over price instability in the long term.

Solana has also launched a major upgrade on the mainnet to combat the negative impact of network congestion. In all, Solana is prime to build on the more than 590% surge it has recorded over the past year.

Source