Solana (SOL) price has plummeted, losing nearly 11% in the past seven days after failing to break the $220 resistance level. Following that rejection, SOL fell below the key $200 threshold, reflecting increasing bearish momentum.
Despite this decline, whale activity shows signs of renewed accumulation, with large investors gradually increasing their positions over the past five days. These developments suggest a potential price recovery, although SOL’s immediate outlook remains under downward pressure.
SOL whales continue to accumulate
The number of addresses holding at least 10K SOL plummeted from 5,096 to 5,025 between December 28 and January 2, reflecting significant sell-offs by large investors during this period. Tracking these “whales” is important because their buying and selling activities often have a major impact on the market.
When whales reduce their holdings, it can be a sign of lack of confidence or profit-taking, leading to increased selling pressure and the possibility of a downward price movement.
However, the number of whale addresses has begun to recover, increasing from 5,025 on January 2 to 5,098 on January 8. This recovery indicates renewed accumulation by large investors, possibly is a positive sign for Solana’s price stability or recovery in the near future.
Although SOL is in a downtrend and lost 14% in the past two days, increased whale activity could signal improving sentiment and could lay the groundwork for a price reversal if the trend continues . These movements often reflect a change in confidence that could support SOL prices in the medium term.
Solana’s DMI shows that sellers are in complete control
The average directional index (ADX) for SOL is currently at 42.6, up from 37 just a day earlier, suggesting the trend is strengthening. ADX measures trend strength on a scale of 0 to 100, regardless of direction, with values above 25 indicating a strong trend and below 20 reflecting weak or no momentum.
This increase in ADX confirms that SOL’s current downtrend is strengthening, suggesting that bearish momentum is dominating the market.
Additionally, directional indicators show that +DI, which represents buying pressure, has dropped significantly to 10.1 from 31.5 over the past three days, indicating a clear decline in buying activity. . In contrast, -DI, which tracks selling pressure, jumped to 33.1 from 8.6 during the same period, pointing to a significant increase in bearish momentum.
These changes reinforce the current downtrend and suggest that Solana price may face continued selling pressure unless buying activity is ramped up significantly to counter the negative sentiment.
SOL Price Prediction: Is it possible to recover the $200 threshold?
Solana’s EMAs point to a bearish outlook, with the short-term EMAs crossing below all of the long-term ones a day ago. This death cross is an important bearish signal, coinciding with a sharp drop in price from $200.
If the current downtrend continues, SOL price could test the critical support at $185. If this level fails to hold, the price could fall further to the next important level at $176.
However, recent whale activity offers a bit of optimism, as large investors have been steadily accumulating SOL over the past few days. This accumulation could be a sign of growing confidence among large investors, potentially setting the stage for a reversal.
If bullish momentum returns, SOL price could challenge the resistance at $197. A breakout above this level could open the door to a gain to $211, which would represent a 12.8% recovery from current levels.