Solana’s recent price action has been marked by a slight decline, as the cryptocurrency failed to maintain support above the $200 level. While the market sentiment appears mixed, signs suggest that Solana could potentially recover and climb higher.
However, the next few days will be crucial to determine whether it can regain momentum or face further challenges.
Solana Investors Move To Accumulate
Throughout July, Solana’s funding rate had remained positive, signaling trader confidence in the cryptocurrency’s potential. However, the funding rate is now nearing the point of turning negative. If this occurs, it would reflect waning optimism among traders.
The shift in sentiment is crucial, as a negative funding rate would signal that traders are no longer betting on a price rise. Instead, they may anticipate further declines, which could lead to a higher concentration of short positions. This change would likely push the price lower in the short term.
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Solana’s balance on exchanges has dropped by 2.03 million SOL in the past week, signaling increased accumulation. This is indicative of investors purchasing $367 million worth of SOL, likely in anticipation of future gains. As the price of Solana declined, many investors have accumulated tokens.
This accumulation, however, shows that investors are expecting Solana to recover eventually. With more SOL leaving exchanges, there is a growing belief that prices could rise again, with investors preparing to book profits once the price rebounds.
SOL Price Has Not Lost A Lot
Solana’s price currently sits at $181, holding above the crucial support level of $171. While the spot market remains optimistic, mixed signals from the derivatives market suggest that the SOL price may face downward pressure in the coming days.
If the bearish trend continues, Solana’s price could decline further to the $165 range or remain in a consolidation phase between $189 and $177 until a clear direction is established. This period of uncertainty may persist until market conditions stabilize.
However, should the accumulation continue to outweigh the bearish pressure from shorts, Solana could break through $189 and convert it into a support level. This shift would allow the altcoin to rise toward $201, potentially invalidating the bearish outlook and reigniting bullish momentum.
The post Solana Holders Gobble Up $367 Million SOL in A Week Amid Price Fall appeared first on BeInCrypto.
