- Despite large volumes of Solana [SOL] being transferred off-exchanges, the token’s price continues to struggle.
- On May 13th, 23 million SOL was sent to undisclosed wallets, none of which were exchanges.
- Despite this, SOL’s price fell by 6.16%, indicating that the HODLing strategy could not prevent another downfall.
As Solana’s price continues to struggle, the token’s future direction remains uncertain. Will it fall to $129 or rise to $155? Find out more in our in-depth analysis.
Large SOL Transfers Off-Exchanges
On the 13th of May, 23 million Solana [SOL] was transferred to undisclosed wallets, according to data from Whale Alert. The first transaction was worth $1.58 billion, followed by a second transaction of 11 million tokens, valued around the same price. Interestingly, none of these transactions went into exchanges, which would have suggested that they were for sale.
Price Struggle Despite HODLing
Despite these large transfers, SOL’s price fell by 6.16% in 24 hours, indicating that the HODLing strategy could not prevent another downfall. At press time, the price of SOL was $140. The future direction of Solana’s native token is a concern for both long-term investors and traders.
Potential Direction of SOL
Analysis of Solana’s on-chain volume shows that the volume was $1.44 billion, an increase from the figure on the 12th of May. This rise in volume, coupled with the price decrease, might be good news for bears. If the volume continues to increase, then SOL’s price could continue to fall, potentially to $129. However, a reversal to the upside might change the direction. If the volume hits new peaks, the price of SOL could attempt to reach $155.
Market Perception of SOL
Looking at the Weighted Sentiment, it was negative at press time, suggesting an increase in gloomy remarks. However, the sentiment was improving. If this metric continues to rise, demand for SOL might increase, potentially leading to a rise to $155. Furthermore, the total Open Interest (OI) was starting to increase, indicating that buyers are getting more aggressive than sellers. If sustained, this increase could lead to a SOL breakout. However, the interest did not seem large enough to confirm the pump into the overhead resistance, suggesting that SOL might not surge higher than $155 in the short term.
Conclusion
In conclusion, despite large volumes of SOL being transferred off-exchanges, the token’s price continues to struggle. While the future direction of SOL remains uncertain, the increase in volume and improving sentiment could potentially lead to a price increase. However, for now, it seems that SOL might not surge higher than $155 in the short term.
