Solana (SOL) Price Rebounds from Crucial Support Levels amid Rising Demand from Whale Investors

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As a seasoned analyst with over two decades of experience in the crypto market, I have witnessed firsthand the ebb and flow of digital assets. The recent surge in whale activity for Solana (SOL) has piqued my interest, as this layer one blockchain has consistently demonstrated impressive growth and potential.

Speaking of Solana (SOL), a top-tier layer one blockchain with a bustling online community of users and developers, there’s been a significant surge in interest from whale investors lately. This high-profile altcoin has caught the eye of speculative traders, thanks to its remarkable growth within the meme coin sector. Here are the key details:

Furthermore, the Solana network is preferred by institutional investors who aim to convert tangible assets like bonds, stablecoins, and property into digital tokens.

Solana Whales on a Buying Spree

Regardless of the current negative crypto market trends, an examination of on-chain data indicates that large investors, often referred to as whales, have been actively purchasing more Solana tokens. In contrast to significant withdrawals seen in Bitcoin and Ethereum investment products last week, a report from CoinShares reveals that Solana recorded the largest inflow of approximately $6.2 million during the same period.

A whale bought 34,807 $SOL($4.52M) again 12 hours ago!
Starting from February 7th, this whale has taken out approximately 206,951 SOL ($29.3 million) in total from both Binance and MEXC, with an average purchase price of around $142 per SOL. Additionally, they have staked a total of 115,135 SOL ($15.3 million).
— Lookonchain (@lookonchain) September 10, 2024

Recently, data analysis from Lookonchain reveals that a large investor bought approximately 34,000 Solana (SOL) tokens, valued at around $4.5 million, within the last 24 hours. Notably, this whale investor has amassed over 206,000 SOL tokens, equivalent to about $29 million, since the start of this year.

In the last day, there’s been a significant increase in the stockpile of stablecoins on cryptocurrency platforms. This trend might lead to an ongoing increase in the desire for SOL in the immediate future, potentially causing another upward surge.

SOL Price Signals Potential Bullish Rebound Ahead

From my research perspective, I’ve noticed that the support level for Solana’s price has been consistently holding strong around $122 since the start of this year. After numerous tests and subsequent rebounds, this trend seems to foster confidence among long-term investors that a recovery and potential surge toward a new high are imminent.

Looking at its technical aspect, Solana’s price pattern suggests a larger downward triangle, typically preceding an upward surge. Tomorrow’s US Consumer Price Index (CPI) data will help us understand if the Federal Reserve is likely to mimic the expected rate reduction on September 18, before the upcoming elections.

If the altcoin frequently ends its sessions below $120 over the next few weeks, it might weaken the positive outlook for its price.

Ecosystem Outlook

The Solana platform has ascended to become a leading web3 infrastructure, boasting approximately $4.7 billion in combined value tied up (TVL) and roughly $4 billion in market capitalization for stablecoins. In the last day alone, the Solana network saw about 5.4 million unique active wallets engage with it.

The Solana network has experienced a boost as its meme coin sector expands, with a market capitalization of approximately $6.3 billion and daily trading volume of around $1.46 billion. Among the top-performing meme coins on the Solana network are Dogwifhat (WIF), Bonk (BONK), and Popcat (POPCAT). As of now, WIF is valued at $1.68 with a 24-hour volatility of 8.5% and a market cap of $1.67 billion, as well as a 24-hour trading volume of $699.38 million. BONK has a value of $0.0000, a 24-hour volatility of 6.2%, a market cap of $1.22 billion, and a 24-hour trading volume of $157.19 million. Lastly, POPCAT is priced at $0.61 with a 24-hour volatility of 7.1%, a market cap of $600.03 million, and a 24-hour trading volume of $89.36 million.

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2024-09-10 14:36