Solana Price Plunge Stirs Whale Activity: What’s Their Strategy?

• The Solana price has declined over the past seven days by 6.70%.
• Pump.fun has deposited $15.23 Million in SOL to Kraken.

Solana price has taken a nosedive as whale movements mount to centralized crypto exchanges. Recent activity observed from Pump.fun resulted in a significant shift in Solana crypto. With the latest deposits, Solana price has declined more than 6% and saw a price retracement.

After depositing 65,000 SOL tokens worth $15.23 million to Kraken, the Solana price faced significant volatility. It has fallen from $264 to $241 in a week.

The strategic selling happened after a 38.29% price rally in a month. However, the weekly performance has dropped by 6.70%.

Given the recent price drop, there are concerns that Solana may experience additional declines. With the rise in sales of major holdings, the question adds additional value.

Solana Price Could Rise as Whale Accumulation Tightens Supply

Recent data from Lookonchain showed big SOL movements by major players, including Pump.fun and whales. Pump.fun deposited 798,869 SOL worth $154M to Kraken and sold 264,373 SOL for  $41.64M USDC, retaining large holdings.

Similar behavior to price and market influence optimization can be inferred from recent deposits of 65,000 SOL worth $15.23 Million. Two wallets likely linked to the same whale withdrew $60 Million worth of SOL in total from Kraken over the past 30 days.

Whale accumulation may suggest that selling pressure could ease. Moreover, the Solana crypto could see a significant recovery ahead.

Will Solana Maintain Its Uptrend or Face Resistance Ahead?

Solana’s price action reflects a slight change in the market sentiment. However, the altcoin was still sustaining gains beyond the key moving averages.

When writing, the Solana price traded at $241. It noted an intraday decline of over 1.80% representing significant selling pressure. The token could see a significant upswing in the short term as the network fee has declined significantly.

A recent analysis posted on X by XForceGlobal highlighted that Solana crypto has been riding the bullish path. Notably, the Solana crypto was riding the path toward the 5th impulse wave and could see a significant upsurge ahead.

However, breaking the ATH of $264 would boost the confidence for carrying long positions. The Relative Strength Index (RSI) line still held its ground in the overbought zone. However, a negative divergence was noted.

Similarly, the Moving Average Convergence Divergence (MACD) indicator plotted the red histogram readings. It conveyed a bearish crossover on the chart.

Future’s Market Data Outlook

Data from Coinglass revealed that SOL’s long/short ratio suggested a bearish stance. The short sellers accounted for over 53.81% of the market positions. This suggested bears’ dominance.

Likewise, the Open Interest (OI) has dropped over 2.90% to $5.11 Billion, conveying signs of prolonged unwinding activity over the past 24 hours. Such declines in long positions reflect a lack of confidence among market participants.

The immediate support zones for SOL crypto were $235 and $228. At the same time, the resistance zones were $255 and $264.

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.