Can Solana (SOL) Reverse Its Current Momentum?
Solana (SOL) has faced challenges throughout August, experiencing a drop in price to its lowest level in five months. However, in the last 24 hours, SOL has shown a brief upside rally, with a 5.40% increase in price. The altcoin is currently trading at $134.67.
Whale transactions have had a significant influence on the market activity of SOL, potentially contributing to the recent decline in its market value. A whale has offloaded a substantial amount of SOL this year, totaling 695K SOL worth approximately $99.5 million. Additionally, there has been an average weekly sale of 19,306 SOL valued at $2.76 million. Despite the sell-off, whales still hold a significant amount of SOL, currently staked at 1.88 million SOL ($255.89M).
On a positive note, Pump.fun, a Solana-based meme coin deployer, has surpassed $100 million in total revenue, showcasing the potential of projects built on the Solana network.
In terms of the asset’s momentum, SOL has witnessed a decline in the last seven days, with a plunge of over 15%. The daily RSI is currently positioned at 47.81, entering a neutral sentiment. However, the short-term 9-day and long-term 21-day moving averages suggest bullish momentum. The CMF indicator indicates increased money flow with selling pressure, and trading volume has declined by 18%.
Looking at the daily price chart, SOL has significant support around the $130.45 range. Breaking below this level could lead to further decline, with the next target around $126. On the resistance side, the major resistance zone is projected to be between $140.28 and $146.
It is important to note that the opinion expressed in this analysis is solely the author’s and should not be taken as investment advice. Conducting personal research is always recommended before making any investment decisions.