A crypto analyst has surprisingly predicted a drop in Solana's price despite the ongoing bullish momentum. His analysis suggests a significant decline for Solana, offering a new perspective on this cryptocurrency's development.
According to a cryptocurrency trader on TradingView known as AlanSantana, Solana's trading volume over the past two months indicates that the cryptocurrency may be heading towards a potential crash.
Analyst Predicts a Massive Crash for Solana
AlanSantana noted that Solana's trading volume between September and October 2024 has dropped significantly, which often signals a bearish outlook and may indicate an upcoming downward price impulse. This development suggests a decrease in demand for the cryptocurrency.
The analyst contrasts the current situation with last year’s trading activity, specifically from September to November 2023, when Solana's trading volume was increasing. This growth in trading volume at the time fueled an upward rally that peaked in the first quarter of 2024, with Solana reaching significant highs.
Based on the difference between the two time periods and the current decline in trading volume, the analyst suggests that Solana is more likely to head in a major bearish direction. He highlighted a potential drop in Solana's price below the $50 level, which would effectively erase the gains from the previous year and return the cryptocurrency to its November 2023 price range.
SOL Whales Remain Active
Solana is still partially in a bullish mode, despite the decline in trading volume noted by AlanSantana. According to data from on-chain monitoring firm Lookonchain, crypto whales increased their Solana trading activity over the past week.
In a post on platform X, Lookonchain cited three instances where Solana whale addresses withdrew SOL tokens from crypto exchanges and subsequently staked them. The largest transaction came from the address “AA21…VxH9,” which moved 153,511 SOL tokens worth approximately $26.4 million from Binance to stake them.
Another whale, identified as “EHax...gAUa,” withdrew 35,498 SOL tokens worth $6.12 million from Binance and Kraken over three days and then staked the tokens. Conversely, the whale address “EGzi…mR7g” purchased 13,000 SOL tokens worth $2.3 million from Binance, bringing their total to 95,651 SOL.
Interestingly, another smart whale address recently sold 26,726 SOL worth $3.86 million. Known for its low buys and high sells, this whale currently holds 42,729 SOL, valued at $7.61 million.
At the time of writing, Solana is trading at $178, an 8% increase over the past seven days. The accumulation and momentum are currently bullish, making a drop toward $40 seem unlikely at this moment.
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