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 Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.