Solana (SOL) has surged 15% over the past seven days, holding near the $200 mark. Its market cap has risen to $107 billion, overtaking BNB. This strong performance is backed by bullish signals, including increased whale activity earlier this month and the formation of multiple golden crosses on SOL’s EMA charts.
Although some profit-taking among whales has occurred, their activity remains elevated compared to historical levels. With this momentum, SOL is well-positioned to test key resistance levels and potentially break above $240.
Solana Whales Decline From ATH but Remain at Elevated Levels
The number of addresses holding at least 10,000 SOL significantly increased between January 4 and January 5, rising from 5,032 to 5,090. This upward trend continued with some fluctuations, reaching an all-time high of 5,104 on January 11.
Tracking these large holders, often referred to as whales, is crucial because their activity can strongly influence the market. Increased accumulation by whales often reflects confidence in the asset’s future, potentially driving prices higher as their positions grow.
After peaking on January 11, the number of whale addresses declined, dropping from 5,096 on January 14 to 5,063 by January 16. While this decrease might suggest some profit-taking, it’s important to note that the current number of whales remains significantly higher than historical levels.
This sustained interest among major holders suggests that confidence in Solana uptrend potential is still strong, even with recent fluctuations. Such stability at elevated levels could provide a solid foundation for SOL price growth.
SOL DMI Shows the Current Uptrend Is Strong
The DMI (Directional Movement Index) chart for Solana shows a sharp increase in the ADX (Average Directional Index), rising from 25.6 to 39.8 over the past two days. This surge coincides with the start of SOL’s current uptrend and the formation of golden crosses.
The ADX measures trend strength, with values above 25 indicating a strong trend and values above 40 signaling even more powerful momentum. A rising ADX during an uptrend suggests growing confidence in the direction of the price movement.
Meanwhile, the +DI (positive directional index) has climbed from 19.7 to 34.1, reflecting increased buying pressure, while the -DI (negative directional index) has dropped from 24.2 to 7.9, indicating a decline in selling pressure. Together, these shifts point to a strong bullish trend, with buyers firmly in control of the market. 2
If this dynamic continues, it could signal further upward momentum for SOL, as the widening gap between +DI and -DI suggests strengthening buyer dominance. Combined with the rising ADX, these indicators paint an optimistic picture for SOL’s near-term price action.
SOL Price Prediction: Will Solana Recover December Levels?
SOL’s EMA (Exponential Moving Average) lines have recently shown multiple golden crosses, with the shortest-term line crossing above several others. This indicates strong upward momentum, suggesting a continuation of the current uptrend. If this momentum persists, Solana price could test the next resistance level at $229.
Breaking through this resistance could open the path to $234 or even $243, pushing SOL above $240 for the first time since early December 2024.
However, if the uptrend reverses and a downtrend begins, the support at $211 will play a crucial role. Should this level be tested and fail to hold, SOL price could drop further to $203, with a possible extension to $185 if bearish pressure intensifies.
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