Solana (SOL), the fifth largest cryptocurrency by market cap, is poised to continue its upward momentum after breaking through one of its strong resistance levels. This upward move follows a notable 33% price drop in the last month of 2024.
Solana (SOL) Price Analysis and Upcoming Levels
Today, January 3, 2024, SOL has experienced a price increase of over 6.25% in the last 24 hours and is currently trading at $217.60.
This recent price increase has led to a breakout of the trend line that SOL formed during the price decline last month. Following this breakout, sentiment for the altcoin seems to be changing and catching the attention of investors and traders alike, leading to a 15% increase in trading volume.
According to expert technical analysis, if the SOL remains above the $210 level, there is a high chance that the price will rise by 22% to reach its all-time high in the future.
Are long-term holders selling?
Besides SOL’s bullish outlook, one thing traders and investors need to know is the continued dumping by long-term holders despite the price witnessing upward momentum, as reported by the on-chain analytics firm Mint glass.
Data shows that SOL has witnessed a price increase of over 15% in the last three days. Over the same period, spot inflow/outflow statistics show that the exchanges experienced an outflow of a significant $201.69 million in SOL, indicating a potential dump by long-term holders.
According to experts and analysts, massive outflows have the potential to create selling pressure and a price decline. However, the market has not reacted to these activities as it appears to be experiencing upward momentum.
The possible reason for this dump is the ongoing discussion about the new health crisis in China, which has recently been compared to Covid-19.
Credit : coinpedia.org
