Key Insights
- Solana price surged 4% intraday; a double bottom pattern could be forming.
- SOL DEX volume dropped to $2.60 Billion amid the price decline.
Over the past two weeks, Solana price has faced a harsh selloff and fell below the $200 support zone. Amidst the broader market selloff, it has slipped below the key EMAs and reached the crucial demand zone of $170.
At press time, Solana price was trading at $172.33, noting a rise of over 4.40% in the past 24 hours. Its market cap stood at $84.21 Billion, ranked 6th in the overall market.
Solana Whale Activity on the Rise, Market Shift Ahead?
Recent developments in the cryptocurrency market showed notable activity among stakeholders.
A recent post on X by LookonChain showed that on February 20th, a large whale withdrew 47,154 SOL worth $7.98 Million from Binance before placing these funds in staking activities.
The strategic movement represents a part of an ongoing trend because the same entity took 134,482 SOL worth about $22.85 Million from the exchange over the past three days.
Such actions taken by large investors trigger market efforts across the broader crypto market, which signals a shift in directional trends or volatility responses.
Under the staking mechanism, users actively contribute to secure the network operations and possibly receive financial benefits. Investors should keep a close eye on price patterns to gain from future market movements.
Solana DEX Volume Drops: Are Bears Gaining their Upper Hand?
The decentralized exchange (DEX) trading on Solana recorded its lowest level of five weeks at $2.61 Billion while its on-chain transaction number dropped by 28%. The rising market uncertainty resulted in SOL’s 14% price drop in the first weeks of February.
The market experienced a major pullback after a substantial influx of funds targeted Solana when it reached $250.
However, Solana’s Total Value Locked (TVL) also saw a substantial decline and has fallen to $8.3 Billion, marking a slowdown in network activity or a withdrawal from DeFi protocols.
Solana Price Prediction: is a Recovery on the Horizon?
On the daily timeframe, SOL price has experienced a massive decline of over 25% over the past two weeks. It has fallen below the key EMAs and looks oversold on the charts.
A recent post on X by LLuciano BTC highlighted that Solana crypto has a strong support zone at $170 and looks poised for a significant bounce ahead.
It looks undervalued and may see a massive price rally than the previous one. The Solana ecosystem is expanding rapidly with massive trading volume and new promising projects emerging daily.
The Relative Strength Index (RSI) line recouped from the oversold zone, had a reading of 32 revealing a possible upward movement ahead.
Going forward, the Open Interest (OI) has dropped over 2.60% to $5.44 Billion, highlighting a short covering move in the past 24 hours.
Such actions indicate that the bears are uncomfortable holding their short positions and are covering their positions because of price-bounce anticipation.
The immediate support zones for Solana crypto were $170 and $155, whereas the resistance zones were $185 and $200.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Nadia Kamal is a dynamic journalist with a specialization in financial technology and crypto markets. Her articles are known for breaking down complex subjects into accessible insights for everyday readers. Nadia’s work has been featured in multiple high-profile publications, earning her recognition from both industry insiders and major brands.