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Solana Price Breaks Key Resistance as Whale Moves $71M SOL
Solana price has reached a crucial price level as it attempts to break out from a descending parallel channel that has limited its movements for weeks. The asset’s latest price action shows signs of upward momentum, with analysts debating whether this breakout is sustainable.
Meanwhile, on-chain data reveal a SOL whale transferred 494,153 SOL, valued at $71.95 million, to Coinbase Institutional, adding further speculation about market movements.
Solana Price Attempts Breakout From Descending Channel
In recent Solana price analysis, technical indicators suggest the asset is challenging key resistance after weeks of downward movement. A descending parallel channel has been restricting its price, but the latest attempt to break above this trendline has drawn attention from traders.
Analyst Ali Martinez shared a chart showing Solana price moving past its downtrend resistance, targeting a potential rally toward $213. If confirmed, this move could indicate a shift from a bearish trend to a more sustained uptrend.
However, analyst Seth maintains a cautious outlook, suggesting that Solana price remains within the broader channel, facing resistance at crucial levels.
Whale Transfers 494,153 SOL to Coinbase Institutional
Additionally, blockchain tracking platform Whale Alert reported a SOL whale moving 494,153 SOL, worth approximately $71.95 million, to Coinbase Institutional. Large-scale transfers of this magnitude often attract market attention, as they may indicate either selling pressure or institutional accumulation.
If the transferred SOL is intended for liquidation, it could introduce selling pressure, potentially affecting the ongoing breakout attempt. However, if the transaction is related to over-the-counter (OTC) trading or institutional accumulation, it may signal increased demand, which could support further upward movement.
According to recent Solana whale activities, SOL price might be headed for a breakout to $180. A whale’s $14 million accumulation eased selling pressure, supporting the recent rebound to $145. If momentum sustains, breaking the $170 resistance could pave the way for a SOL rally toward $180.
Buyers Return as SAR and MACD Suggest a Breakout
Meanwhile, Solana price technical indicators have also turned bullish, supporting the potential breakout. The Parabolic SAR (Stop and Reverse) indicator, represented by the dotted blue lines, has shifted below the price candles, signaling a possible trend reversal to the upside. This suggests that selling pressure is weakening and buyers are regaining control, increasing the likelihood of a sustained price recovery.
The Moving Average Convergence Divergence (MACD) and Histogram further reinforce this bullish sentiment. The MACD line has started converging toward the signal line, reducing the bearish momentum. Additionally, the histogram bars have begun turning green, indicating a potential crossover into positive territory. This shift suggests that buying pressure is building up, which could support an upward move toward $170 and possibly $180 if resistance levels are breached.
However, historical resistance between $175 and $185 remains a significant test for the asset. To confirm a true breakout, Solana price needs to maintain high-volume closes above these levels. Failure to do so may result in a rejection, pushing the asset back into the descending channel.
More so, the Solana network has outpaced Ethereum in terms of active users and transaction efficiency. This has lead to speculations that SOL price could hit $500 before ETH price reaches $5,000. With 73.4 million monthly active addresses compared to Ethereum’s 7.4 million, Solana’s adoption rate suggests strong upside potential. If this growth trend continues, analysts believe SOL could outperform ETH in the near term.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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