Despite an impressive 80% monthly rally in December that propelled its market cap to the fourth position among all cryptocurrencies by size, the price of the Solana (SOL) token experienced a post-Christmas dip, falling to $107.
Nevertheless, this price increase of Solana has prompted investors to look for a possible entry point into this cryptocurrency, as it shows signs of promise and the ability to add gains to its value further.
A substantial surge characterized by a remarkable increase of over 500% within two months has been observed. Notably, a rotation trend is evident, shifting towards Ethereum (ETH) and other ecosystems, indicating a potential pause in the current momentum for Solana.
In higher timeframe trading, there is a keen interest in long-term entries at $70-80. This strategic approach suggests careful consideration of price levels for establishing enduring positions in the market, as per an X post from crypto expert Michael van de Poppe on December 28.
“Anything happening in this period is basically day/scalptraders momentum. ”
“If you are looking to take entry points on higher timeframes, these are not the zones to take them, especially not after such a large upwards run.”
In case of further retracement by this asset, the next ideal entry point for traders to engage in long-term positions would be $60.
SOL whale activity as an example
With the increase in the price of SOL, some long-term holders are deep in the green zone, and one of them decided to cash out his profits.
A substantial deposit of 303,756 SOL, equivalent to $32.8 million, was recently made by a prominent investor, commonly referred to as a “whale,” into Binance. This transaction has prompted speculation within the cryptocurrency community, suggesting that the move may have been executed to capitalize on potential profits through subsequent sales.
The same whale conducted significant withdrawals in the preceding month, removing an impressive 423,754 SOL valued at $28.18 million from Binance at $66.5 per SOL. Despite these withdrawals, the whale retains a substantial stake of 119,998 SOL, amounting to $12.44 million, which is currently staked.
The overall financial activity has resulted in a profit exceeding $17 million for the whale, per blockchain analytics platform Lookonchain post on December 28.
SOL price analysis
At the time of press, SOL was trading at $107.60, noting an increase of 2.12% over the past 24 hours, adding to the gains of 16.01% made over the past 7 days, with a notable 81.04% change over the past month.
Technical indicators for Solana, sourced from TradingView, reflect bullish sentiments.
A summary of the indicators indicates a ‘strong buy’ rating at 16, with moving averages signaling a ‘strong buy’ at 14. Oscillators tend toward a ‘buy’ rating of 2.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
