- With more than 1 million tokens flowing into Coinbase, the price of SOL could fall to $93.
- If demand for SOL increases, the price could rise above $100.
According to Whale Alert, two large transactions involving Solana (SOL) occurred on February 5th.
First, 1.78 million SOL tokens were transferred to the Coinbase exchange. A few minutes later, another SOL round worth $11.43 million was transferred to the same exchange.
🚨 119,597 #brush (11,436,478 USD) was transferred from . #Coinbase To an unknown new wallet https://t.co/k4ScR62UYh
— Whale Alert (@whale_alert) February 5, 2024
Traders keep their expectations very low.
If tokens of this size are transferred to an exchange, it means the associated cryptocurrency could experience a notable sell-off.
This could be the case for SOL, considering how the price action has been moving over the last 24 hours. At press time, the fifth most valuable cryptocurrency was priced at $97.92.
SOL’s price reflected the opposite performance compared to the first quarter of 2023. When last year began, the Solana token was worth $9.96.
By February 5, 2023, the price has increased to $23.50. However, SOL’s Year-To-Date (YTD) performance shows a 10.70% decline in its price.
Recent transfers may drop the price below $90. Additionally, AMBCrypto’s Long/Short ratio analysis shows that traders share similar sentiments.
This ratio measures the number of long positions relative to the number of short positions.
If the Long/Short ratio value is greater than 1, it means that there are more long positions than short positions. In this case, traders expect the price of the asset to rise.
However, SOL’s Long/Short ratio is 0.93, indicating overall sentiment is bearish.
Source: Coinglass
No major moves yet in SOL
A further assessment of the derivatives market shows that there were noticeably more liquidations of long positions than short positions on February 4th. However, at press time, the dynamic appears to have changed.
As of this writing, the buy liquidation amount is $1.82 million and the sell liquidation amount is $1.44 million.
This proximity to forced position closures can be linked to SOL’s recent moves. Unlike the way we moved a few days ago, SOL is integrated.
Therefore, those who bet on the higher price and those who bet against it appear to have taken the same level of risk.
From a trading perspective, the 20 EMA (blue) and 50 EMA (yellow) were almost at the same point. Additionally, these EMA points were similar to Solana prices at the time of writing.
Trends like these suggest that a big upward move is not next for SOL. Instead, tokens can remain at $93 and $98.
Is your portfolio green? Check out our SOL Profit Calculator
Additionally, the moving average convergence divergence (MACD) also showed a downward trend. At press time, the numbers indicate bearish momentum for Solana.
In the short to medium term, it may be difficult for SOL to break the $100 market. However, if market sentiment changes, prices may reverse within a short period of time.
Source: TradingView