Potential Threat: Solana's Risk of Dipping Below $130

Potential Threat: Solana’s Risk of Dipping Below $130

Solana’s Recent Price Movement

Solana’s recent price movement has presented a profit-taking opportunity for some holders.

Close to 80K SOL tokens have recently moved to an exchange.

SOL has moved to its highest point since 2022.

Solana [SOL] has recently witnessed price surges, reaching levels reminiscent of 2022.

Solana Whale Eyes Profit

Capitalizing on this newfound uptrend, a substantial amount of SOL was transferred by a whale to an exchange, presumably for sale.

  • As per a Whale Alert tweet dated the 2nd of March, a Solana whale was strategically positioning itself for profit-taking.
  • The unidentified wallet transferred 79,983 SOL, equivalent to nearly $10.3 million, to the Coinbase exchange.
  • This move by the whale aligned with expectations, considering the consistent upward trends observed in SOL over the past few weeks.

SOL Climbs to its Highest in Close to Two Years

AMBCrypto’s analysis of Solana’s performance on a daily timeframe showed a remarkable surge of over 30% in the past week. This upward trajectory drove SOL to a price level reminiscent of April 2022.

As of the conclusion of trading on the 2nd of March, SOL settled at around $130, registering a modest increase of less than 1%.

This price range was significant for SOL, as it did not reach the $130 mark throughout 2023.

The consistent upward movement in SOL’s price led to its entry into the overbought zone on the Relative Strength Index (RSI).

However, the RSI has since dipped below the overbought threshold, reflecting the declining price trend experienced by SOL.

At the time of this writing, SOL was trading at around $125, reflecting a decrease of over 3%.

Solana Volume Drops but Assimilates Whale Sales

Examining Solana’s volume on Santiment showed that it concluded February with an impressive surge, achieving its highest volume in months, totaling over $7 billion.

However, the volume has experienced a subsequent decline and was around $2.4 billion at press time.

AMBCrypto’s additional look at the volume trends showed that the daily volume absorbed the significant whale volume observed in a previous move.

Nevertheless, the price drop, as noted at the time of this writing, suggested an increased dominance of sellers in the market.

Solana TVL Sees Yearly Highs

Solana’s The Total Value Locked (TVL) had witnessed a significant upswing, as shown by DefiLlama. Notably, the TVL had surged from around $1.4 billion on the 27th to over $2.5 billion at press time.

This marked the first time since 2022 that the TVL has reached the $2 billion threshold.

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