Can Whale Transfers Propel Solana (SOL) to New Highs?

• Solana recorded a spike of over 2.45%, trading at $189.  
• SOL’s daily trading volume has dropped by more than 47.82%.

The crypto market exhibits a mild recovery as some assets break free from the bear trap. Solana experiences a price uptick but still struggles to escape the red zone. Analysts speculate that SOL could target $200 and above as interest builds.

The uptick reflects the price’s resilience amid a slightly recovering market, hinting at further upside correction. SOL has gained over 2.45% in the past 24 hours. Following the rejection, the altcoin has dropped below the $190 mark. With a $91.8 billion market cap, Solana trades at $189.47. 

Concurrently, the market has witnessed $4.32 million in SOL liquidations over the past 24 hours, as per Coinglass data . The daily trading volume of the altcoin has reached $2.61 billion. 

On the other hand, a whale transferred 15,567 Solana worth $2.9 million, from Coinbase Prime to purchase 2.25 million AI16Z tokens at $1.29 each. Their current holdings have grown to 2.88 million AI16Z tokens, currently valued at $3.8 million. 

Such whale transfers can impact prices by creating buying pressure. If they accumulate large amounts, it drives the prices up. Conversely, large sell-offs can cause selling pressure, leading to price drops.

Will the Bulls Take Charge of Solana Soon?

Solana’s four-hour trading pattern reports a potential attempt at an upside correction. With increasing bearish pressure, SOL may struggle to break above the $192 mark. A further downside correction could result in prolonged consolidation and delay the recovery efforts.

Contrarily, if SOL manages to recover its momentum, it could challenge and reclaim the $200 level. The asset’s sustained momentum might then push the price higher, recovering the recent losses and signalling the beginning of a new rally. 

Moreover, the Moving Average Convergence Divergence (MACD) line is found above the signal line, but both are below the zero line suggesting a short-term bullish momentum within an overall bearish trend. This could be the start of a relief rally within a weak market.

The indicator which assesses the capital flow, the Chaikin Money Flow (CMF) is settled at 0.10, indicating a positive money flow and a moderate level of buying pressure in the market. In the meantime, SOL’s daily trading volume has plunged by over 47.82%.  

In addition, Solana’s daily relative strength index (RSI) at 53.43 infers a neutral momentum with no strong trend direction. Besides, the daily frame of the altcoin reveals the short-term 9-day moving average above the long-term 21-day moving average.