Solana Rally Rejected: Is the Altcoin’s Uptrend in Jeopardy?
Following an effort at a breakout, Solana (SOL) was rejected at $154, retracing to a low of $148.34 at the time of writing. This demonstrated strong downward pressure. Moreover, the altcoin’s price charts are still struggling, and institutions and whales are growing agitated.
A whale wallet unstaked 1 million SOL, or $139 million, nine days ago, according to Lookonchain. The whale has since made $35 million from the sale of 240,000 SOL. Such aggressive selling usually indicates a decline in market confidence. It implies that whales are becoming less optimistic about the altcoin’s future in this instance.
Solana Whales Disappear as Netflow Turns Negative
Nevertheless, in addition to selling, whales are retreating from the market. Whales appear to have completely vanished based on the analysis of Solana’s Spot Average Order Size. The selling of existing whales and the decline in huge whale orders suggest that larger entities are becoming more bearish.
Fascinatingly, small-scale traders are choosing the accumulating route while Solana whales are selling. After two days in a row with positive netflow, Solana’s netflow dropped to negative territory. As of this writing, Solana’s spot netflow has fallen to -19.69 million, per CoinGlass data. Generally speaking, accumulation and a decrease in sell-side risk are indicated when net flow falls to negative.
SOL Set to Rebound? Whales Wait as Retail Investors Accumulate
According to AMBCrypto, there is currently no solid proof of extensive institutional or large-scale whale dumping in SOL, even though some whales are selling. It seems that this selling is not a panic departure but rather a part of a larger pattern of profit-taking and rotation. Many whales actually appear to be taking a wait-and-see stance.
The general mood is still bullish, and recent price retracements are probably just the market correcting itself. Therefore, it is anticipated that Solana will recover. In the event that individual investors keep building up, SOL may recover $154 and target $159 again.
For more up-to-date crypto news, you can follow Crypto Data Space.
