Price Drop Imminent as 200k SOL Transferred to Binance
Solana (SOL) has climbed to become the fourth-largest cryptocurrency, surpassing XRP and BNB in just one week. However, there are signs that a price drop could be on the horizon. The Relative Strength Index (RSI) for Solana has risen from 77 to 79, indicating a potential decline in price and selling pressure. In order for SOL to maintain its bullish trend, the RSI would need to cool down to around 60 before any further price surges can occur.
Currently, SOL is down by 1.2% in the past 24 hours and is trading at $113. Its market cap is sitting at $48.3 billion, firmly holding its position as the fourth-largest cryptocurrency after Bitcoin (BTC), Ethereum (ETH), and USDT. Solana’s daily trading volume shows a slight downward momentum, hovering around $4.8 billion.
In light of the possibility of a price decline, a whale has transferred 199,999 SOL tokens to the Binance crypto exchange. This transaction is valued at approximately $23 million, and further movements have yet to be detected.
This development comes after Solana reached a 21-month high of $117.3 on December 24, following a consistent upward trend over the past month. Notably, SOL has experienced a 94% rally in the last 30 days.
Data from Santiment also reveals a 5% increase in Solana’s total open interest (OI) over the past 24 hours, rising from $1.36 billion to $1.42 billion. According to Santiment, long-position SOL holders are slightly dominating the asset’s total OI. The Binance funding rate for Solana currently stands at 0.012%.
As Solana continues to make waves in the cryptocurrency market, it remains to be seen how it will fare in the face of potential price fluctuations. Traders and investors will be closely monitoring the RSI and other key indicators to gauge the future direction of SOL’s price.
