Solana is pulling back into key support levels, as the selling volume is causing the price to head towards the crucial support close to $140. The SOL price action shows a correction following a rejected top and may now be approaching the base of the prior demand. The drop below $151 support, which is a pivotal one, has led to a drop below $150, which could lead to a deeper retracement toward the $141 to $145 zone.
The market sentiment around Solana is shifting as the big dormant coins are on the move. As per the data from Glassnode, the platform witnessed its 3rd biggest Coin Days Destroyed or CDD, which is a metric that tracks the movement of coins based on how long they have remained dormant. A massive spike of nearly 3.55B CDD, which suggests either profit taking or repositioning.
Secondly, another on-chain data point suggests a massive efflux is the inflows and outflows of the bridged cryptos. These are the cryptos that are transferred from one blockchain to another, and hence the data suggests that the investors are moving out of Solana. As per the data from Artemis, Solana is the top chain that faced huge outflows.
The above chart shows a huge outflow from the Solana blockchain, while Ethereum experiences a massive influx of nearly $7.5 million compared to over $10 million in outflows. This suggests a probable liquidity flow between these top two blockchains, while the race for supremacy between them has gained huge attention in recent times.
Ever since the SOL price marked the highs close to $300, it has been trading within a steep descending trend. The rebound from the yearly lows indicated a rise above the bearish influence, but the current price action suggests a deeper correction could be possible. The price has been marking huge losses since the start of the month, which could drag the levels close to the pivotal support levels, probably below $140.
The weekly chart of the SOL price suggests the token is undergoing a recovery, but it is stuck within a cup & handle pattern. The token is heading towards the crucial support at $141, and as the weekly RSI is plunging to the lower support of the descending parallel channel, the price may also drop to the support of the handle. However, the levels may rebound and rise along the support of the pattern and reach $160 in the coming days.
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