Over the past three months, Solana (SOL) has been making waves in the cryptocurrency market with an impressive 55% climb. Currently trading around $235 with a 4% increase in the last 24 hours, the token continues to capture attention among investors and analysts alike.
Whale Activity Bolsters Solana’s Bullish Structure
One of the key factors driving the bullish momentum is the behavior of large holders, commonly referred to as whales. From August 19 onward, wallets holding over 100,000 SOL increased their share from 57.81% to 58.95%. Historically, such accumulation often correlates with aggressive price rallies. For instance, during SOL’s increase from $146 to $205 earlier this year, whale holdings rose significantly, marking a 40% price surge.
This renewed interest demonstrates confidence among high-net-worth investors. Whales appear to be betting on further upside as the coin trades above $230, signaling that they believe the bullish trend is far from over.
Smart Money and On-Chain Metrics Indicate Growing Strength
Apart from whales, the Smart Money Index has surged from 261.62 on September 7 to 290.14 as of September 12. Historically, addresses tracked in this index tend to buy into rallies with strong conviction and sell quickly for profit. The rising index underscores heightened activity from high-conviction wallets betting on continued growth.
Additionally, on-chain data points to reduced selling pressure. On September 10, 291,000 SOL flowed into exchanges, which could have indicated profit-taking activity. However, as the price crossed $227, outflows sharply surpassed inflows with nearly 1.77 million SOL removed from exchanges. This trend suggests holders are shifting their tokens to private wallets, reducing the risk of sudden sell-offs.
Technical Patterns Supporting Further Price Increases
Analyzing the technical charts, Solana trades within an ascending channel pattern—typically a bullish formation. With the upper trendline acting as immediate resistance, the crypto’s next major test lies in breaking this level. A confirmed four-hour candle close above the trendline could trigger a breakout, setting $244 as the next potential target.
However, traders should remain cautious of key support levels at $227, $224, and $211. A dip below $211 could dampen the current bullish structure, but for now, the trend appears to favor upward momentum.
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Key Takeaways
While Solana’s price momentum remains strong, traders and investors should closely monitor whale accumulation, smart money activity, and key price levels. With both high-net-worth investors and on-chain metrics aligning on a bullish outlook, a potential breakout to $244 could mark an exciting phase in Solana’s market performance.
Disclaimer: The contents of this article are for informational purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.
