Since being rejected at $146 six days ago, Solana has traded within a narrow range between $130 and $140. In fact, as of this writing, the altcoin traded at $133, down 1.94% on the daily charts.
With Solana [SOL] stuck on a thin margin amid prolonged bearishness, investors, especially whales, are jumping ship.
Solana whale offloads 100k SOL
While Solana has struggled on its price charts, whale activity on the spot market has remained relatively high. In fact, Spot Average Order Size data from CryptoQuant showed large whale orders since the 28th of November.
When the Spot market records such orders, it signals increased participation from whales. These market participations could be either selling or buying.
EmberCN observed one such whale order. According to the on-chain monitor, a Solana deposited 100,000 SOL worth $13.57 million.
This whale has been on a profit-taking spree for the past eight months. The whale unlocked his SOL holdings in April. Since then, his address has transferred 615,000 SOL worth $107 million to Binance in batches.
Even after this selling spree, the whale currently holds 733k SOL worth $99.16 million. Additionally, it earned 357,000 SOL in staking rewards over the past four and a half years.
When a whale offloads continuously, it signals a lack of confidence in the market direction. Thus, they attempt to lock in gains and avoid further losses.
Exchange activity also reflected this increased selling activity. According to CoinGlass, Solana Spot Netflow turned positive again after four days.
At press time, the altcoin’s Netflow was $2.66 million, a significant jump from the previous day’s -$23.5 million, indicating higher outflows.
More losses for SOL?
Solana has struggled on its price charts as investors, including whales, turned bearish and started selling.
As a result, the altcoin’s downward momentum has continued to strengthen, with bears having total control of the market.
In fact, Solana’s Directional Movement Index (DMI) dropped to oversold territory at 16, while its -DI was at 32.
When -DI sits above +DI, it signals intense downward pressure, with buyers totally displaced in the market. Such market conditions leave an asset at risk of further losses.
Therefore, if selling pressure, especially from whales, persists, SOL could breach $130 support and drop to $126. To invalidate this bearish move, bulls need to push for a daily close above $140.
A close above here will strengthen the altcoin, allowing it to retest $146 and target the middle band of Fibonacci Bollinger Bands at $178.
