After surging to $110, Solana [SOL] dropped to a low of $102 amid the broader market slowdown. Since then, Solana has started to consolidate and trade sideways.
At press time, Solana was trading at $105 after slightly rising by 1.4% on the daily charts, adding to its 13% weekly surge. However, altcoins’ trading volume dropped 64% to $1.8 billion, indicating reduced market activity.
Solana saw some weakness as speculative activity dried up. Over the past 12 hours, $471.85 million flowed out of the Futures market while only $456 million flowed in.
Solana whale returns with an $8M buy
Over the past week, demand for Solana from high net worth investors, both individuals and institutions, has surged significantly.
In fact, AMBCrypto earlier reported that Solana Spot ETFs recorded $138 million in net inflows. Besides institutions, whales have been aggressively accumulating, since SOL crossed the $100 mark.
With SOL now holding strongly above $100, high net worth investors have turned very optimistic and eye more gains. In fact the recent market cool down has created a perfect window for whales to continue buying.
Lookonchain reported that a whale returned after eight months of dormancy. The whale bought 76,856 SOL worth $8 million from Hyperliquid.
This has now become a significant trend. A day earlier, Lookonchain reported two whales purchasing $33.5 million worth of SOL. With whales accumulating during a period of upside stability, it signals strong confidence in the market.
Exchange flows further confirms this accumulation spree. After rising to positive, Solana Spot Netflow dropped again.
At the time of writing, Netflow was around -$4.5 million, reflecting higher outflows. Often, strong demand, especially from high net worth investors, has preceded gains on Solana price charts.
What to expect next for SOL’s price?
Although the market has shown some weakness, Solana still holds bullishness. In fact, ADX with SMA indicator confirms this trend strength.
At press time, the +DI was hovering over the -DI, with the ADX and SMA above it. Likewise, the Bull-Bear Ratio held positive, suggesting bulls have control of the market.
These two indicators reflect strong upward pressure and the trend’s potential to hold. Therefore, if investors, especially whales, continue to buy and Futures turn to opening new positions, the trend will resume.
In doing so, SOL will close above $105 and target to flip $110 where the trend collapsed. However if the derivatives market remains dominated by sellers, sideways movement will prolong.
Final Summary
- A Solana whale returned after 8 months of inactivity and bought 76,856 SOL worth $8 million from Hyperliquid.
- SOL has traded within a thin margin hovering between $104 and $105 amid market slowdown, but market structure leans bullish.