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Key Insights:
- Whales accumulate 96,180 SOL, signaling confidence in a potential rebound.
- Solana’s RSI hits 25.73, indicating deeply oversold conditions.
- TVL drops 40%, raising concerns about Solana‘s ecosystem stability.
Solana price is at a crossroads. After tumbling 41% in the past month, the token has caught the attention of whales, traders, and analysts alike.
A whale recently withdrew 96,180 SOL ($12.45 Million) from Binance and staked it. This sparked speculation about a potential rebound.
At the same time, Solana’s total value locked (TVL) has dropped 40%, raising concerns about network activity. Some believe SOL is primed for a comeback, pointing to historical trends and oversold conditions. Others warn that continued capital outflows could lead to further downside.
Whale Activity and Market Sentiment: Solana Price Under Pressure
On-chain tracker, Lookonchain flagged a 96,180 SOL withdrawal from Binance, noting that the funds were immediately staked. This suggested a long-term bet on Solana rather than a short-term trade.
Large-scale whale movements frequently signal savvy money positioning ahead of a price move. Despite this accumulation, Solana price remained under pressure.
SOL was trading at $130.82, down 7.58% over the last 24 hours. The dramatic decrease came after a month of steady selling, reflecting broader market weakness.
Some traders view this as an opportunity. Meta Gorgonite, a market commentator, believes this level is a steal.
“SOL is too undervalued right now to pass up. The road to $300 starts here,” he posted on X.
Oversold Signals Point to a Potential Rebound
Market analyst Raoul Pal argued that SOL is now deeply oversold. He noted that Solana price was currently at two standard deviations below its log regression channel. It is a zone that has historically triggered sharp rebounds.
Additionally, the Relative Strength Index (RSI) of SOL hit 25.73 on February 26. This marked its lowest level since the 2022 bear market lows. An RSI below 30 typically suggests an asset is oversold, increasing the likelihood of a bounce.
Looking at historical patterns, March has been a strong month for the token. According to CryptoRank, Solana price has averaged a 32.4% gain in March over the past four years.
- March 2021: SOL jumped 49%.
- March 2022: A 23.2% increase followed.
- March 2024: The coin skyrocketed by 60.8%.
If history repeats itself, SOL could recover a significant portion of its recent losses.
Can Solana Prove the Bears Wrong?
Sentiment remains divided. Lark Davis, a popular crypto analyst, reminded investors that Solana has been in this position before.
“In the past four years, SOL has retraced more than 40% multiple times. But every time, it has bounced back stronger,” he posted on X.
He noted that Solana price was remarkably stable. This was demonstrated when it fell below $10 during the bear market, only to rebound with enormous gains.
Technical trader IncomeSharks noted that Solana’s On-Balance-Volume (OBV) remained strong. This hinted at underlying buying pressure.
“If that channel breaks up, I’ll go back to being a bull,” he wrote.
However, risks remain. If SOL fails to hold above $130, further downside could follow. That could be experienced, especially if capital continues flowing out of the ecosystem.
Final Thoughts
Whales are buying; technical indicators show oversold conditions, and historical data suggested a strong March performance. However, declining TVL and liquidity outflows could slow any potential recovery.
If history is on Solana price side, a rally could be around the corner. Meanwhile, the token may struggle to reclaim lost ground if bearish momentum persists.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
