Solana: 3 reasons why SOL can hit $223 before September ends
Key Takeaways
Solana hit $211 earlier than easing to $209 as whales fueled Futures demand. Open Curiosity reached $12.9 billion, and profit-taking hinted at near-term dangers.
Solana [SOL] jumped to a 7-month excessive of $211 earlier than easing again to $209 at press time. This bullish outlook prolonged throughout the month-to-month and weekly charts, rising by 16.9% and eight.18%, respectively.
Amid this sustained uptrend, giant entities, particularly whales, are making vital strikes.
Solana whale strikes 20,000 SOL
In accordance with Onchain Lens, a whale withdrew 20,000 SOL price $4.09 million from Kraken and deposited it into Kamino to borrow $3 million USDC.
Supply: Onchain Lens
After these transactions, the whale transferred the funds to OKX, suggesting DeFi leveraging. The truth is, such a transfer signaled strategic positioning for the subsequent market leg, with the whale eyeing course bets.
Whales bounce into Futures
As whale exercise intensified, they appeared to focus on Futures markets.
Futures Common Order Measurement information from CryptoQuant confirmed 4 consecutive days of Huge Whale Orders. When this metric highlights whale exercise, it implies that whales dominated buying and selling volumes.
Supply: CryptoQuant
Curiously, once we look at the Derivatives market, these contributors are largely bullish. In accordance with CoinGlass, Futures Open Curiosity jumped 5.14% to a brand new all-time excessive of $12.9 billion.
Supply: CoinGlass
Such a spike in OI displays regular capital influx and elevated participation in Futures. In the meantime, the altcoin’s Lengthy/Quick Ratio jumped to 1.02, the place longs accounted for 50.6% of the full contracts.
Supply: CoinGlass
With longs dominating, it implied that whales speeding into Futures are primarily betting on Solana’s value to rise additional.
Solana revenue takers pose a menace
Unsurprisingly, as Solana’s value continued to rally, so did the urge for food amongst holders and traders to money out.
Spot Netflow information from CoinGlass turned constructive, spiking to a 3-month excessive of $76 million.
Supply: CoinGlass
Such a surge pointed to heavier alternate deposits than withdrawals, an indication of aggressive promoting. Having stated that, persistent inflows usually create downward strain—a warning of potential pullbacks.
Can Futures demand maintain the rally?
In accordance with AMBCrypto’s evaluation, Solana continued to rally as whale demand for Futures positions skyrocketed.
Consequently, the altcoin’s Directional Motion Index (DMI) made a bullish crossover, hitting 29. On the identical time, its Relative Vigor Index (RVGI) additionally made a bullish crossover, reaching 0.056.
Supply: TradingView
Usually, when these momentum indicators make a bullish crossover, it alerts a robust uptrend and its probability to proceed.
Having stated that, if patrons, particularly whales, proceed to build up for strategic positioning, Solana will discover the subsequent vital resistance at $223.
Conversely, if momentum light and whales withdrew capital whereas profit-taking stayed sturdy, a correction might comply with. In that case, Solana (SOL) would possibly pull again towards $186.
