Solana (SOL), the fifth-largest crypto by market cap, is facing a turbulent period marked by significant whale transactions. On June 14, 2024, Whale Alert reported over $372 million worth of Solana moved in substantial transactions. This heavy trading comes at a time when the broader crypto market is experiencing a notable bearish trend, with Solana showing signs of increased volatility.
Whale Alert highlighted two major transactions involving SOL. The first transfer saw 1,000,000 SOL, worth approximately $147.85 million, move from an unknown wallet to a new, unidentified wallet. Shortly after, another transaction involved 1,519,488 SOL, valued around $224.64 million, also between unknown wallets. These movements are stirring concerns among investors, especially amidst the current market downtrend.
As of June 15th, 2024, Solana (SOL) is trading at $144.26, reflecting a 2.64% drop in the past 24 hours and a significant decline of over 10% in the past week. This decline coincides with a broader bearish sentiment in the crypto market, making it especially challenging time for SOL and other digital assets.
Analysts Warn of Potential Solana Downtrend
Renowned crypto analyst Morecryptoonl has analyzed Solana’s trading patterns, offering insights into its potential future movements. According to the analyst, SOL’s price has broken below a crucial lower trend line, potentially initiating wave (3) to the downside. This break signals a possible further decline, though wave (2) seems too shallow, suggesting potential volatility and short-term uncertainty for Solana.
The analysis hinges significantly on Elliott Wave Theory, which forecasts movements in asset prices. Waves (2) and (3) are part of a corrective pattern following an impulsive move, with key Fibonacci retracement levels indicating potential support and resistance areas. Levels at 0.618 (163.13) and 0.786 (168.37) could act as resistance if SOL attempts a rebound, highlighting the intricate dynamics at play.
Morecryptoonl’s immediate target for SOL is $133, aligning with the 1.618 Fibonacci extension level (118.12). This target suggests a potential downside if wave (3) unfolds as expected. Additionally, a broader target around $119 reinforces the bearish outlook, indicating that SOL might face more pressure before stabilizing, unless key support levels hold.
Another prominent crypto analyst, Ali, has identified a critical support level at $141 on the SOL daily chart. The TD Sequential, a popular technical analysis tool, shows a ‘9’ count, typically indicating a potential trend reversal. Ali suggests that if SOL holds this support, it might see a rebound, potentially reversing some recent losses.
This support level of $141 is crucial. Historically, hitting such a key level and receiving a TD Sequential buy signal often leads to a temporary reversal or at least a pause in the prevailing trend. A successful hold of this level could provide a short-term respite from the bearish momentum, offering investors hope amidst the uncertainty.
However, if SOL dips below the $141 support level, it could invalidate the buy signal and suggest further downside risks. Conversely, if the support holds and a rebound occurs, it could offer a much-needed break from the current downtrend. The coming days are critical for Solana as it navigates these turbulent waters, with investors eagerly watching for signs of stability or further decline.
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