Solana Price Dips – Whales Transfer SOL Worth $1.325 Billion

This past week Solana (SOL) has experienced a price decline and some issues with network congestions, which may be the primary reason for the drop.

During the recent price drop, large crypto investors, also known as whales, made significant transfers that shook the digital asset markets.

Whales Move Over 7.6 Million SOL

According to data from Whale Alert, two transfers worth over $1.32 billion were made on April 11th:

These moves could have significant impact on the market dynamics, depending on their purpose.

Solana Network Performance

Solana has emerged as the leading blockchain in terms of weekly transaction volume, recording 39.5 million transactions over the past week, which is more than double the volume of Polygon, standing at 12.9 million transactions.

However, when it comes to transaction fees, Solana collected only $16.9 million, notably less than Uniswap’s $30 million or Ethereum’s $68 million.

Moreover, the derivatives market for Solana is encountering a possible risk of cascading liquidations, as futures open interest surged by 32% in the past week. The combined value of matched positions between long and short positions reached 17 million SOL, equivalent to $2.86 billion.

While this doesn’t explicitly indicate an excessive dependence on leverage by bullish traders, it does underscore the potential risk if Solana’s price experiences further declines.

Solana Price Analysis

Renowned analyst Peter Brandt recently highlighted an interesting development on Solana’s (SOL) four-hour price chart: the completion of a descending triangle pattern.

A descending triangle has been completed in $SOL
I am only the messenger, not the message
Remember, a pattern failure (to do what it is supposed to do under classical rules) is more important than a pattern completion pic.twitter.com/ezershgA5A

— Peter Brandt (@PeterLBrandt) April 10, 2024

The descending triangle pattern is a widely recognized technical formation characterized by lower highs and a horizontal support line. Sometimes, a strong support line leads to a price bounce and a significant upward movement.

With SOL’s pattern now concluded, anticipation among traders is high as they anticipate potential price movements, whether upward or downward.

At the time of writing SOL is trading at $171 after a 9.2% decline in the past week and has a 24-hour volume of around $3 billion. With a market cap of $76 billion Solana still remains in the top 5 cryptocurrencies in CoinMarketCap’s rankings.

The 1-day technical analysis from TradingView shows a complicated santiment – the summary is pointing to “neutral” with 8 signals, the moving averages show “sell” with 8 and the oscillators point to “buy” with 3.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.