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In a surprising take, a crypto analyst has anticipated a crash in Solana’s price despite continued bull momentum. This analyst predicts a crash in Solana’s price, offer a new perspective on the crypto heavyweight.
According to a crypto trader who goes by the name AlanSantana on TradingView and is very active on the trading platform, Solana’s trading volume over the past two months suggests that the crypto is gearing up for a crash.
Analyst predicts huge crash for Solana
AlanSantana observed that Solana’s trading volume fell significantly between September and October 2024, a development that often signals a bearish outlook and could indicate an impending downward price impulse. Judging from this outlook, it suggests that the volume trend points to declining demand.
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The analyst also draws a contrast with last year’s trading activity, particularly from September to November 2023, when Solana’s volume increased. This increase in trading volume fueled a bullish rally that continued into the first quarter of 2024, with momentum propelling Solana to substantial highs in March.
Based on the difference in two time periods and the current decline in trading volume, the analyst suggested that Solana is more likely to move in a bearish direction. In light of this, he highlighted a Solana price crash below the $50 price level. Interestingly, a crash below $50 will effectively wipe out the gains of the past year and return the cryptocurrency to its price range in November 2023.
SOL whales continue activity
Solana still largely is in a bullish mode despite the drop in trading volume pointed out by AlanSantana. Crypto whales have increased their Solana trading activity over the past week, according to data from on-chain tracking firm Lookonchain.
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In one recent message Social media platform X, Lookonchain highlighted three examples of Solana whale addresses withdrawing and staking SOL tokens from crypto exchanges. The largest withdrawal came from address “AA21…VxH9,” which moved 153,511 SOL tokens worth approximately $26.4 million from Binance for staking.
Another whale, identified with the address “EHax…gAUa,” has withdrawn 35,498 SOL tokens worth $6.12 million from Binance and Kraken over the past three days, also staking the tokens. On the other hand, whale address “EGzi…mR7g” purchased 13,000 SOL tokens worth $2.3 million from Binance to bring its total holdings to 95,651 SOL.
Interestingly enough, there is another clever Solana whale address recently sold 26,726 SOL worth $3.86 million. This whale, known for buying low and selling high, currently has 42,729 SOL, which are valued at $7.61 million.
At the time of writing, Solana is trading at $178, up 8% in seven days. The accumulation and momentum are bullish and a crash towards $40 seems bleak at the moment.
Featured image created with Dall.E, chart from Tradingview.com