Solana [SOL] has not had a strong price trend in recent weeks. In fact, it shed 4% of its value over the past week. And yet, over the past month, it was up by 4.8%. The recent losses came after the altcoin’s rejection at the $84 local resistance level.
The average order size of executed spot trades has increased over the past six months too. It is calculated by dividing the total trading volume by the number of trades.
The hike in average size was likely also a product of a decline in the number of trades. As the average size increases into big whale orders territory, the metric lights up green, signaling potential accumulation.
The same trends were seen from February-April, but did not lead to a sustained recovery above $100. Solana is likely heading towards a similar outcome.
Solana under pressure from distribution trends
Lookonchain reported that Pump.Fun sold another $6.15 million worth of SOL in recent hours, bringing their total sales to just over $800 million, at an average token price of $169.
Crypto analyst Ali Martinez used data on the number of whale wallets to demonstrate a fall in whale interest. The analyst noted a 3.6% decrease in the number of Solana whale wallets since May.
This represented a decrease in 200 whale wallets. If network-wide accumulation was underway, as the big whale order metric suggested, the number of whale wallets should have increased.
Hodlers may be increasing their holdings, but the lack of conviction from whales is still a concern.
Expected short-term SOL price trends
A recent AMBCrypto report highlighted why the $84-$90 area is a stern supply zone. Morgan Stanley activated spot trading for Solana through its E*TRADE platform too.
And yet, this development has not so far catalyzed a boost in demand for the altcoin.
The liquidation heatmap of the past month highlighted the same. The $84-$86 area, in particular, appeared to be a dense cluster of short liquidations. To the south, the $70-$73 zone was much closer to the price and likely the imminent price target.
The liquidation map made it clear that a sweep of the $85 and even the $90 regions was possible. Hence, traders leaning bearishly in the short-term should be aware of the potential for a short squeeze.
Final Summary
- The number of Solana whale wallets has declined by 3.6% since May, indicating a lack of conviction.
- At press time, short-term price trends remained bearishly poised and a move to $70 could occur soon.
