Solana (SOL) Set for 22% Rally, But Sell-Off Concerns Loom
Solana (SOL), the fifth-largest cryptocurrency by market capitalization, is expected to continue its upward momentum after breaking one of its strong resistance levels. The increase follows a significant 33% price drop in the last month of 2024.
Solana (SOL) Price Analysis and Upcoming Levels
Today, January 3, 2024, Sol The price has surged over 6.25% in the past 24 hours and is currently trading at $217.60.
The recent price spike resulted in a breakout of SOL’s trendline formed during last month’s price decline. Sentiment toward the altcoin seemed to shift following this breakout, catching the attention of investors and traders, resulting in a 15% increase in trading volume.
According to expert technical analysis, if SOL remains above $210, it is likely to surge 22% in the future and hit a record high.
Are long-term holders selling?
In addition to SOL’s bullish outlook, one thing traders and investors need to understand is that despite the upward price momentum, long-term holders are continuing to sell, according to Onchain Analytics coin glass.
Data shows that the price of SOL has increased by more than 15% in the past three days. During the same period, the spot inflow/outflow indicator showed that the exchange experienced $201.69 million worth of SOL outflows, indicating possible selling by long-term holders.
Experts and analysts believe that massive outflows have the potential to cause selling pressure and price declines. However, the market is yet to react to the activity as it appears to be experiencing upward momentum.
The underlying reason for this dump is the ongoing discussion about the new health crisis in China, which has recently been compared to Covid-19.
