In the recent market downturn, traders and investors have liquidated over $1.08 billion worth of long and short positions within the last 24 hours, triggering widespread fear across the cryptocurrency landscape.
With the crypto world on edge, everyone is scrambling to understand the implications of this massive sell-off and what it means for the future of their portfolios.
Major SOL Transfers Raise Alarms
Amid this fear, investors and whales have transferred a significant 2.38 million Solana (SOL) worth $307 million to Centralized Exchanges (CEXs) including Binance and Coinbase in the last 24 hours, according to data from blockchain-based transaction tracker Whale Alert.
This substantial transfer has not only caused a price drop in SOL but also led to the breakdown of a critical support level at $118.
Solana Price Analysis
As of press time, SOL is trading around $126, having experienced a price decline of over 10% in the past 24 hours. Meanwhile, trading volume has surged by an astounding 235% during the same period, indicating heightened participation from traders and investors.
Has the Market Been Manipulated?
A former Coinbase angel investor posted on X (formerly Twitter) that SOL’s price drop is not a natural occurrence. He claimed that certain whales are manipulating the market to create fear, causing inexperienced investors to sell off their holdings, allowing the whales to buy back at lower prices.
Dear noobs, $SOL is NOT naturally going down. It is being pushed down via whales placing spoofy sell orders on exchanges to make noobs and risk managers sell to ‘buy back lower’. They are stealing your bags and will make you buy back at a higher price.— mert | helius | hSOL (@0xMert_) August 5, 2024
Solana Technical Analysis
Expert technical analysis shows that SOL has managed to recover above the crucial support level after the recent breakdown, reducing the risk of a significant further price decline. If SOL sustains a daily close above $125, a price reversal is likely.
Dear noobs, $SOL is NOT naturally going down. It is being pushed down via whales placing spoofy sell orders on exchanges to make noobs and risk managers sell to ‘buy back lower’. They are stealing your bags and will make you buy back at a higher price.— mert | helius | hSOL (@0xMert_) August 5, 2024
However, failing to maintain this level and closing below $118 could potentially lead to a drop to $83 in the coming days.
The next 24 hours will be critical for SOL as it battles to stabilize and potentially reverse its recent losses.
Also Check Out: Ethereum Picks Up Speed as Bitcoin Eyes Recovery Toward $60K: Here’s the Next ETH Price Trend
What do you think will happen to Solana? Share your predictions.
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