As Bitcoin (BTC) fell below the $62,000 level, the overall cryptocurrency market experienced significant selling pressure. This bearish sentiment caused a major setback for Solana (SOL) as it broke its two days of consolidation near the crucial level of $160.
Solana (SOL) Price Action and Technical Analysis
The breakdown from consolidation has shifted the sentiment for SOL to bearish. Additionally, the SOL’s daily chart looks the form a bearish double-top price action pattern, which is yet to be confirmed.
Source: Trading View
Based on the historical price momentum, the last time SOL reached to $160 level it experienced massive selling pressure and fell to the $140 level. However, this time there is a high possibility that SOL could fall again to the $140 level.
Currently, SOL’s open interest also supports this bearishness as it has dropped by 7% in the last 24 hours, indicating reduced interest from investors, according to CoinGlass data.
Whereas, the technical indicator named 200 Exponential Moving Average (EMA) signaling SOL is still in an uptrend as it is moving above it.
SOL Whale on Buying Spree
However, investors still look at accumulating tokens in this range. Recently, an on-chain analytic firm lookonchain made a post on X (Previously Twitter) stating that Whale has purchased a significant 28,717 SOL worth $4.56 million in this consolidation zone from Binance.
Moreover, this was not an ordinary purchase as whales staked all those tokens meaning they might be aiming for long-term holding.
Current Price Performance
At press time, SOL is trading near $153 and has experienced a price decline of over 2.5% in the last 24 hours. Meanwhile, its trading volume has remained stable during the same period, according to coinmarketcap data it is up by 1.2%.
Other major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), BNB (BNB), and Dogecoin (DOGE) experienced similar selling pressure. In the last 24 hours, these tokens have seen a price drop of over 3.2%, 5.3%, 2.5%, and 3.5%, respectively.
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