Solana (SOL), the fifth-largest cryptocurrency by market cap, is poised to continue its upside momentum after breaching one of its strong resistance levels. This upward movement follows a notable price decline of 33% in the last month of 2024.
Solana (SOL) Price Analysis and Upcoming Levels
Today, January 3, 2024, SOL has experienced a price surge of over 6.25% in the past 24 hours and is currently trading at $217.60.
This recent price surge has caused a breakout of the trendline that SOL formed during its price decline last month. Following this breakout, sentiment for the altcoin appears to be shifting, gaining attention from both investors and traders, which has led to a 15% increase in trading volume.
According to expert technical analysis, if SOL maintains itself above the $210 level, there is a strong possibility it could soar by 22% to reach its all-time high in the future.
Are Long-Term Holders Selling-Off?
Besides SOL’s bullish outlook, one thing that traders and investors need to know is the continuous dumping by long-term holders, despite the price witnessing upside momentum, as reported by the on-chain analytics firm Coinglass.
Data shows that SOL has witnessed a price surge of over 15% in the past three days. During the same period, spot inflow/outflow metrics reveal that exchanges have experienced an outflow of a significant $201.69 million worth of SOL, indicating a potential dump by long-term holders.
According to experts and analysts, massive outflows have the potential to create selling pressure and a price decline. However, the market has not reacted to these activities, as it seems to be experiencing upside momentum.
The potential reason for this dump is the continuous discussion regarding the new health crisis in China, which has recently been compared to Covid-19.
