Whales purchase $12M worth of Solana cryptocurrency, leading to speculation of a potential price increase toward $200.
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Solana (SOL) has experienced a 5.08% rally, reaching a local high of $171, as a series of positive developments have fueled a bullish sentiment around the cryptocurrency.
- Whale Accumulation
A significant whale transaction marked the beginning of this price surge. The whale purchased 71,000 SOL tokens worth $12 million from Binance and deposited them into Kamino, potentially indicating a long-term position for yield and anticipation of further gains [2].
- Buy-Sell Delta Turning Positive
The positive shift in the Buy-Sell Delta, an indicator of buying and selling activity, suggests increased buying pressure, contributing to the price increase [2].
- Golden Cross Formation
A technical indicator known as the golden cross also occurred during this period. This bullish signal is triggered when the short-term moving average surpasses the long-term moving average, further supporting the upward price movement [2].
- Resistance at $172 and Potential Pullback
SOL is currently testing resistance at the 20 EMA ($172). A potential rejection at this level may trigger a pullback to the 100 EMA or 50 EMA around $162 [1].
- Futures Traders' Long Exposure
Futures traders have doubled down on long exposure for Solana, with over 79% of positions in Solana's futures market being long, and the 1-day ratio standing at 4.13 [3].
- Volume Surge and Spot Netflow
Trading volume surged by 23.54%, pushing total turnover to $4.94 billion. However, Spot Netflow turned negative after holding within the positive zone for two consecutive days [4].
- Aggressive Accumulation and Futures Market
The Buy-Sell Delta has remained positive for three consecutive days, indicating aggressive accumulation, and the futures market continues to show a strong bullish bias [5].
- Focus on the $172 Resistance
All eyes are now on the $172 resistance for a potential breakout. A clean daily close above the 20 EMA could open the path toward reclaiming the $200 mark [6].
At press time, Solana's Aggregated Funding Rates remained positive at 0.0137, with predicted Funding at 0.0163 [7]. The price spike may be attributed to whale accumulation and retail trader activity.
[1] SOL's MA50 has flipped the MA200 on the daily chart, forming a golden cross. [2] This whale's action implies they are positioning for yield in Solana. [3] Over 79% of positions in Solana's futures market are long, with the 1-day ratio standing at 4.13. [4] Spot Netflow turned negative after holding within the positive zone for two consecutive days. [5] The Buy-Sell Delta held within positive territory, indicating aggressive accumulation. [6] All eyes are now on the $172 resistance for a potential breakout. [7] At press time, Solana's Aggregated Funding Rates remained positive at 0.0137, with predicted Funding at 0.0163. [8] On the 5th of August, Solana saw 553K in Buy Volume compared to 532K in Sell Volume. [9] Solana recorded a positive Buy-Sell Delta for three consecutive days. [10] Futures traders have doubled down on long exposure for Solana. [11] Trading volume surged by 23.54%, pushing total turnover to $4.94 billion. [12] Solana [SOL] rallied 5.08%, reaching a local high of $171.
- Bitcoin and Ethereum investors might be watching Solana's rally with interest, as the positive sentiments surrounding it could potentially spill over into other cryptocurrencies in the DEFI technology space.
- The surge in Solana's volume and net flow could suggest a shift of interest towards this token on crypto exchanges, impacting other altcoins like Bitcoin and Ethereum.
- The golden cross formation in Solana extends beyond just SOL, as this technical indicator often signals the start of a general bullish trend in the crypto market, which could benefit Bitcoin and Ethereum.
- As Solana's price approaches the $200 mark, traders might consider taking profit from their long positions in Bitcoin or Ethereum to reinvest in Solana, given the bullish sentiment and strong futures market indicators.
