For the past 24 hours, Solana (SOL) price has been going in the red. This occurred in unison with a significant sell-off by a whale in the crypto market.
Most recently, Solana has also seen the Pump.fun Fee Account sells 40,000 SOL, or about $6,680,000. This transaction is not the first one in this account’s selling spree. It has reportedly sold 969,945 SOL worth 162 million SOL at an average of 78.7 SOL million at 156.4 SOL.
Impact of Whale Activities on Solana
Whale activities are, therefore, considered potential signals of future prices. Whale moves deal with large volumes due to the large share of the volume they occupy. It is conspicuous that the latest selling by the Pump.fun Fee Account was on Solana. The same appears to be profit-taking associated with the bears’ impact on Solana.
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When whales sell parts of their tokens, a bearish market is created due to temporary price drops negatively impacting the emotions and actions of average investors.
A detailed technical analysis provides additional support for speculations involving Solana’s price mechanism. The first attached chart presents daily trading, in which it appears the currency has rebounded slightly from a dip that could have been further triggered by the whale’s massive sell-off. The second chart builds upon Solana’s recent resistance and support levels.
The indicators show that Solana’s price is above different SMAs, such as 50, 100, and 200 SMAs. These SMAs are regarded as future indicators of price directions. Another way could be that the currency has been able to sustain positions above the above-stated averages.
SOL Sell-offs to Continue?
The same could signal hidden strength despite this sell-off. Therefore, a bullish outlook might be expected in the near term if investors’ confidence is stable.
Furthermore, similar information is given in the second chart indicating the position of the Money Flow Index (MFI). MFI is currently at 63.94. The MFI is an indicator that breaks the momentum measurement with both price and volume. It is focused on detecting over-bought or oversold levels in the market.
As a rule, a value above this indicator means the buyers have the upper hand. Such large investors began to engage in Solana purchases actively. They confirm that significant portions of investors are still interested in purchasing Solana under the current price level.
Market Sentiment and Investor Behavior
The market still has a relatively bullish outlook on Solana. Investors still follow whales’ transaction activities and other events that affect the market. Whale transactions are public due to blockchain’s openness. This can cause interference as smaller investors mimic them, either selling due to whale selling or buying to take advantage of a drop in whale-induced price.
Also, the recently observed decrease in trading volume by 4.67% could point to a rather more passive-aggressive stance from traders. This suggests that many of them tend to wait for stronger signals to engage more actively.
