Solana (SOL) Recovers After Monday’s Market Crash: Did SOL Whales Play a Role?

Solana (SOL) rebounds by over 20% after taking a significant hit in the recent cryptocurrency market downturn, trading above $140 at the time of writing. The broader crypto market, reeling from geopolitical tensions and Japan’s interest rate decision, has seen a 16% crash in the previous session, with Bitcoin (BTC) losing ground after a brief rally.

Solana, once the fifth-largest cryptocurrency by market capitalization, breached its critical support level of $121 on Monday, sending shockwaves through the community. Trading volume for SOL has surged by over 245%, indicating heightened investor activity amidst the price drop.

Solana Whales Under Fire

A former Coinbase angel investor has accused whales of manipulating Solana’s price, alleging that they are deliberately driving it down to accumulate more tokens at lower prices. This claim has ignited discussions about market manipulation in the crypto space.

Liquidation data reveals that Solana investors and traders have lost over $65 million in the past 24 hours, with both long and short positions impacted.

SOL/USD Technical Analysis and Outlook

Technical analysts are bearish on Solana, with the price trading below the crucial 200 Exponential Moving Average (EMA) on a daily timeframe. A daily candle closing below $122 could potentially lead to a further 30% drop, bringing the price down to $77. However, a close above $122 might signal a potential price reversal to $155.

While the Relative Strength Index (RSI) indicates oversold conditions, suggesting a possible price rebound, the decline in open interest by 26% reflects decreasing investor confidence.

Solana’s Critical Liquidation Levels

Solana currently faces two significant liquidation levels: $100 on the downside and $130 on the upside. If the price drops to $100, long positions worth $40.5 million could be liquidated. Conversely, a price rise to $130 could trigger the liquidation of nearly $140 million in short positions.

Despite the recent price plunge, Solana has managed to recover somewhat, trading around $141 at the time of writing, representing a 21% increase in the past 24 hours. However, the cryptocurrency market remains volatile, and investors should exercise caution.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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