Solana (SOL) Faces Bearish Pressure as Price Correction Looms

• Solana’s recent price surge to $68 sparks excitement, but potential bearish signals raise concerns.
• The analyst sees an Elliott Wave pattern, suggesting a Solana correction to $49. 
• Large wallet holders unstaking millions of SOL tokens could intensify selling pressure.

Solana (SOL) has recently witnessed an impressive price surge, hitting a high of $68, a peak unseen since May 2022. This rally, representing a substantial 30% increase in value over the past week, has captivated the crypto community. However,  an analyst has shadowed this bullish rally, signaling potential bearish trends.

Whale Movements and Exchange Inflows: A Prelude to Price Correction?

According to the astute observations of @Bluntz_Capital, a crypto analyst, Solana’s current price trajectory might be steering toward a downturn. The analyst has identified a completed Elliott Wave pattern in SOL’s price movement, suggesting a possible retraction to the $49 mark, aligning with the 38.2% Fibonacci retracement level.

Moreover, recent activities by SOL’s large wallet holders have added credence to this bearish outlook. Notably, Lookonchain reported significant movements by whale accounts. One such account, “H4yiPh,” was recorded to have unstaked 2.16 million SOL tokens, valued at around $128 million, with a substantial portion of these tokens making their way to prominent exchanges Binance and Kraken.

Another whale account followed suit, unstaking over half a million SOL tokens and similarly transferring them to these centralized exchanges. These deposits, totaling nearly $50 million, could amplify selling pressure on Solana, nudging its price downwards.

SOL/USD Technical Analysis

Bearish momentum has prevailed in the Solana (SOL) market over the previous 24 hours, with prices falling from an intraday high of $68 to an intraday low of $56.97, according to CoinStats. This price drop suggests a possible change in market sentiment toward selling pressure. At press time, SOL was trading at $58.89, a 13.89% decrease from its previous high.

During the downturn, SOL’s 24-hour trading volume and market capitalization fell by 13.04% and 6.04%, respectively, to $3,910,472,665 and $24,894,185,723, indicating a drop in investor involvement and total market value. This drop in trading volume and market capitalization may be ascribed to SOL’s adverse attitude, as investors may be unwilling to buy or hold the asset in the face of the asset’s downward price trajectory.

In conclusion, while Solana’s recent price surge was impressive, caution is warranted. Bearish signals, including whale movements and technical analysis, suggest a potential price correction ahead.