- Solana broke out of a multi-month consolidation, driven by significant whale activity.
- Whale accumulation of Solana signals renewed investor confidence and strong market interest.
- Technical indicators show bullish momentum for Solana, despite overbought RSI levels.
Solana’s price has recently surged, breaking free from a prolonged consolidation phase that started in March. Over the past three weeks, the blockchain’s native token has shown impressive momentum, rallying by 41.12% in the last month alone.
At this press, Solana (SOL) is trading at $243.65, reflecting a 2.25% increase in the last 24 hours and a 17.97% rise over the past week. Market analysts are closely monitoring SOL, which appears to be targeting a key liquidity range between $280 and $300. Notably, whale activity has played a significant role in driving this bullish momentum.
Solana Hits Yearly High with Growing Whale AccumulationWhale Activity Boosts Solana’s Price
On-chain data reveals that a notable accumulation of SOL by a prominent whale has reignited bullish sentiment. According to Lookonchain, the whale has amassed 257,599 SOL—worth approximately $54 million—since October 22. This buying spree has continued over the last 24 hours, with an additional 7,500 SOL tokens, valued at $1.57 million, being acquired.
This surge in whale activity highlights growing interest from large investors, signaling renewed confidence in Solana’s market potential. Notably, such strategic purchases often indicate a bullish outlook, as whales typically accumulate assets during periods of anticipated growth.
Technical Indicators Signal Strong Momentum
From a technical perspective, indicators suggest robust bullish momentum for Solana. The Relative Strength Index (RSI) currently stands at 75.07, indicating that SOL is in the overbought zone. While this reflects strong upward momentum, it also hints at the possibility of a short-term pullback or consolidation.
Additionally, the Moving Average Convergence Divergence (MACD) supports the bullish trend, with the MACD line positioned above the signal line. Both lines remain above the zero threshold, reinforcing the current uptrend. Green histogram bars further confirm that the bullish momentum is gaining strength.
Potential Risks Amid Overbought Conditions
Despite the strong uptrend, traders are advised to exercise caution as technical signals suggest potential short-term risks. The overbought RSI underscores the likelihood of a price pullback or consolidation in the near term.
If SOL maintains its position above critical support levels, the bullish trajectory could persist. However, any signs of bearish divergence on the RSI or a bearish MACD crossover might indicate a reversal. These developments would require close monitoring to assess their impact on Solana’s price movement.
