Key Insights
- SOL price was hovering between the 20-day and 200-day EMA.
- Solana price takes support on a massive ascending trendline.
Solana (SOL) price has been in a bullish trend and has kept rising by taking support on a giant trendline.
The price has been consolidating on the trendline for a week and has formed a bullish marubozu candlestick. Solana price has experienced selling pressure for a month but managed to defend the 200-day EMA.
Solana Price at Major Support, Gains Bullish Momentum
When writing, Solana crypto was trading at $205 which has climbed by 7.1% over the past 24 hours. The market capitalization was $$100.28 Billion and the 24-hour trading volume was around $$3.64 Billion.
Based on the technical chart, the SOL price has formed a base at the trendline and defending the 200-day EMA.
Suppose the price gains more bullish momentum and advances the 20-day EMA, it could be a buying signal.
If the price sustains over the 20-day EMA, buying pressure could follow. Buying pressure in this territory could attract investors which may lead to a strong buying pressure.
Once the price departs from the $215 zone, buyers may lift the price to the $300 territory.
Conversely, if the price slips below the trendline, buyers might lose their confidence. Losing the 200-day EMA may spread fear among buyers, who might prefer to book profit. Amid profit booking, strong selling pressure can be observed.
RSI has performed a golden crossover with the RSI-based moving average. SOL price was defending the 200-day EMA. Technical indicators suggest that the Solana price is expected to perform positively.
Can Pumpfun’s Cash-Out Affect SOL Price?
Pumpfun’s recent large deposits of Solana to Kraken could harm SOL’s market dynamics as the price emerges from a downtrend.
With total deposits of 2,280,377 SOL, or roughly $462 Million, and a transfer of 148,759 SOL, or $28.22 Million, to Kraken, Pumpfun seems to be taking advantage of Kraken’s liquidity to enable large trades or guarantee profits.
Taking advantage of arbitrage opportunities, controlling liquidity to maintain platform operations, or preparing to hedge against market volatility are possible motivations behind this activity.
A revenue-generating strategy through market trades is indicated by the sales of 264,373 SOL for 41.64 Million.
The deals impact SOL’s price by potentially raising supply pressure, which subsequently affects Solana’s valuation and investor sentiment. Additionally, it potentially highlights Pumpfun’s operational strategies.
Pumpfun’s massive cash-out of SOL tokens, which turned 264,373 SOL into 41.64M USDC, shocked the trading community and affected how people felt about Solana.
As major holders liquidate their positions, such large-scale transactions frequently indicate a bearish sentiment and could cause price instability.
These actions could be interpreted as a drop in confidence in SOL’s near-term price prospects. In that case, a sell-off could follow or a highly cautious outlook could take over.
Solana Price Analysis on Major Support Zone
Solana price is currently in a critical phase, showing signs of bullish momentum as it holds support on a prominent ascending trendline and the important 200-day EMA.
The recent price action indicates potential for further gains if it successfully climbs above the 20-day EMA, which could trigger increased buying activity from investors.
However, the situation remains delicate, as a drop below the trendline and 200-day EMA could lead to a loss of confidence among buyers and result in significant profit-taking and selling pressure.
Overall, the technical indicators suggest a favorable outlook for SOL, provided it maintains its current support levels and continues to attract investor interest.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.