Solana price rallied to $68 for the first time since May 2022, on Thursday. The altcoin yielded 30% gains for SOL token holders over the past week. An analyst evaluated the Ethereum alternative’s price trend and identified warning signs for a bearish trend reversal in Solana.
Also read: Solana price has risen almost 400% since SEC labeled SOL a security, alongside ADA and MATIC
Pseudonymous crypto analyst behind the X handle, @Bluntz_Capital, commented on Solana’s price trend in a recent YouTube video. The analyst predicted a pullback in SOL on the daily timeframe. After yielding double-digit gains for holders over the past week, SOL price is likely to correct lower to the 38.2% Fibonacci level, from the bottom of the Elliott Wave pattern, at $49.
According to @Bluntz_Capital, Solana price is likely to decline to the $49 level since the wave pattern is complete.
The recent spike in SOL token deposits to exchanges is another factor that supports a bearish thesis for the Ethereum-alternative token.
Based on data from crypto intelligence tracker, Lookonchain, a whale wallet address “H4yiPh” unstaked 2.16 million SOL tokens worth $128M, on November 16. Of this, 312,868 SOL worth $18.56 million was deposited to Binance and Kraken.
Another whale wallet unstaked 505,034 SOL tokens worth $31.7 million on Thursday, and transferred 505,000 SOL worth $31.7 million out, most of which was deposited to Binance and Kraken.
A whale unstaked 505,034 $SOL ($31.7M) today and transferred 505K $SOL ($31.7M) out, most of which was deposited to #Binance and #Kraken.
The whale still has 2.9M $SOL($184M) staked.https://t.co/pe5QVhXcYl pic.twitter.com/9jeCk6hGdd
The large volume deposits are likely to increase selling pressure on the Ethereum-alternative, driving SOL price lower.
At the time of writing, SOL price is $59.08 on Binance.
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MATIC price risks drop to $0.68 before a rebound in Polygon’s native asset. Polygon Chain Development Kit recently integrated Celestia to aid development of applications in the ecosystem. Polygon’s Proof-of-Stake chain is processing over 10 million transactions a day, fueling a bullish thesis for MATIC adoption.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, declined to $2,148 early on Wednesday. The fall in prices follows a broader sell-off in the crypto market since Monday, likely driven by investors’ de-risking strategy ahead of a macro-packed week, with US CPI data for November and the US Fed last meeting of the year.
US Consumer Price Index (CPI) data release for November has revealed an increase of 0.3% in inflation, month-on-month and the annual inflation rate is 3.1%. The CPI report and the upcoming Federal Open Market Committee (FOMC) meeting on Wednesday make for volatile Bitcoin and altcoin prices.
AAVE’s top 150 wallets now hold the largest volume of the token as compared to the past five months. The DeFi token’s on-chain metrics support a bullish thesis for AAVE price. AAVE price is likely to bounce as RSI drops below 40 on the 12-hour timeframe.
Bitcoin (BTC) price uptrend has sustained since mid-September on the weekly timeframe but has since slowed down following the lack of tailwinds to drive the market. All along, narratives, themes and speculation were the driving factors, inspiring a wave of fear of missing out (FOMO) in the market. As it turns out, FOMO is not enough anymore.
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