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Solana Holders Gobble Up $367 Million SOL in A Week Amid Price Fall

2 mins
Updated by Harsh Notariya
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In Brief

  • Bitcoin recovers to $118,419 after dipping to $115,700 following the FOMC meeting, but sell-side pressure and market volatility pose risks.
  • The Relative Unrealized Profit (RUP) indicator suggests a potential pullback, while the Squeeze Momentum Indicator (SMI) signals Bitcoin is entering a consolidation phase.
  • Bitcoin needs to break above $120,000 and reclaim $122,000 as support to avoid further declines; a drop below $117,261 could push it toward $115,000 or lower.
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Solana’s recent price action has been marked by a slight decline, as the cryptocurrency failed to maintain support above the $200 level. While the market sentiment appears mixed, signs suggest that Solana could potentially recover and climb higher.

However, the next few days will be crucial to determine whether it can regain momentum or face further challenges.

Solana Investors Move To Accumulate

Throughout July, Solana’s funding rate had remained positive, signaling trader confidence in the cryptocurrency’s potential. However, the funding rate is now nearing the point of turning negative. If this occurs, it would reflect waning optimism among traders.

The shift in sentiment is crucial, as a negative funding rate would signal that traders are no longer betting on a price rise. Instead, they may anticipate further declines, which could lead to a higher concentration of short positions. This change would likely push the price lower in the short term.

For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Solana Funding Rate
Solana Funding Rate. Source: Coinglass

Solana’s balance on exchanges has dropped by 2.03 million SOL in the past week, signaling increased accumulation. This is indicative of investors purchasing $367 million worth of SOL, likely in anticipation of future gains. As the price of Solana declined, many investors have accumulated tokens.

This accumulation, however, shows that investors are expecting Solana to recover eventually. With more SOL leaving exchanges, there is a growing belief that prices could rise again, with investors preparing to book profits once the price rebounds. 

Solana Exchange Balance
Solana Exchange Balance. Source; Glassnode

SOL Price Has Not Lost A Lot

Solana’s price currently sits at $181, holding above the crucial support level of $171. While the spot market remains optimistic, mixed signals from the derivatives market suggest that the SOL price may face downward pressure in the coming days.

If the bearish trend continues, Solana’s price could decline further to the $165 range or remain in a consolidation phase between $189 and $177 until a clear direction is established. This period of uncertainty may persist until market conditions stabilize.

Solana Price Analysis.
Solana Price Analysis. Source: TradingView

However, should the accumulation continue to outweigh the bearish pressure from shorts, Solana could break through $189 and convert it into a support level. This shift would allow the altcoin to rise toward $201, potentially invalidating the bearish outlook and reigniting bullish momentum.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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