Solana Price Sees Brief Recovery After Whale Purchase Amid Market Concerns

Solana’s price plummeted to a multi-month low on Friday, reaching $126.15 before bouncing back to $145 after a whale stepped in to buy the dip. This recovery was largely driven by the whale’s confidence in a potential bounce, purchasing a cumulative $14 million worth of Solana.

Whale Purchase Boosts Market Confidence

According to recent data, the whale initially withdrew $12 million worth of Solana from Binance and staked it. Later in the day, the same whale executed two more similar transactions, bringing the total purchase to $14 million. These purchases are notable, as they occurred just a day before a $1.75 billion Solana token unlock, an event typically bearish for the market.

The timing of these purchases also coincided with broader concerns about Solana’s future, particularly after meme coins in its ecosystem saw significant losses. The market cap of all Solana meme coins has dropped from over $25 billion in January to $8.9 billion today. The Official Trump market cap has also dropped from $15 billion to $2.5 billion.

Solana’s Market Performance

Solana’s total value locked has dropped to $5.38 billion, down from its year-to-date high of $9.35 billion. Similarly, weekly decentralized exchange volume on the network has fallen 20% to $17 billion. However, Solana’s recovery also aligned with a slight rebound in U.S. equities, with the Dow Jones rising 200 points, and the S&P 500 and Nasdaq 100 gaining 30 and 72 points, respectively.

Solana Price Analysis

Solana’s price peaked at $295 earlier this year before plunging to $126.15, its lowest level since September 6. It dropped below the crucial $170 support level and the double-top pattern neckline at $265—a pattern often considered a bearish signal. Solana is now approaching a death cross, where the 50-day and 200-day moving averages flip, which could indicate further downside.

However, there is a chance Solana could rebound after the token unlock, potentially pushing SOL back toward $170 resistance. This would be the reverse of the typical “buy the rumor, sell the news” scenario.

Key factors to watch in the Solana market include:

  • The $1.75 billion Solana token unlock and its potential impact on the market.
  • The performance of Solana meme coins and their effect on the overall ecosystem.
  • The total value locked and decentralized exchange volume on the network.
  • The alignment of Solana’s price with U.S. equities and broader market trends.

As the Solana market continues to evolve, it’s essential to stay informed about the latest developments and trends. For more news and updates on the cryptocurrency market, visit Global Crypto News.

Post Views: 2