Solana whales scoop up $35M in SOL: What’s behind their move?

• Price action suggests that SOL could easily reach the $195 level in the coming days.
• SOL’s liquidation data indicates that bulls are currently dominating the asset, meaning bets on the long side are significantly higher.

It appears that whales are back in action, as Solana [SOL], the world’s fifth-largest cryptocurrency by market cap, approaches the breakout level of $195. 

Whales bags $35 million of Solana 

On 28th October, the blockchain-based transaction tracker Lookonchain posted on X (previously Twitter) that whales accumulated a significant 202,400 SOL worth $35 million in the past week.

In addition, these whales have staked their acquired SOL tokens, suggesting optimism among traders around SOL as a long-term investment. According to data, these notable SOL acquisitions were made by only three whales.

Lookonchain noted that the whale wallet address “AA21BS” withdrew over 153,511 SOL worth $26.4 million. Another wallet address “EHax,” withdrew 35,498 SOL worth $6.12 million, and the last whale’s wallet address “EGzi,” withdrew 13,000.8 SOL worth $2.3 million.

However, these notable withdrawals were made from the Binance and Kraken cryptocurrency exchanges.

Solana technical analysis and key levels 

As per the data, these significant accumulations followed the breakout retest of a bullish inverted head and shoulders pattern, indicating a positive outlook for SOL holders.

Source: TradingView

According to AMBCrypto’s technical analysis, SOL appears bullish and is approaching a crucial resistance level of $195. Based on recent price action, there is a strong possibility that SOL could reach the $195 level in the coming days.

However, these notable SOL acquisitions and the current sentiment suggest that SOL has the potential to reach its all-time high of $260 level in the coming days. As of now, the 200 Exponential Moving Average (EMA) indicates an uptrend.

Mixed on-chain metrics 

Despite this positive outlook, SOL on-chain metrics hint at a mixed sentiment. According to the on-chain analytics firm Coinglass, SOL’s Long/Short ratio currently stands at 1.03, indicating a bullish sentiment among traders.

However, its open interest has dropped by 7%, suggesting a potential liquidation of short positions amid the recent rally.

As of now, the major resistance levels are at $172.9 on the lower side and $178 on the upper side, with traders over-leveraged at these levels, according to the Coinglass data.

Source: Coinglass

If SOL’s sentiment remains unchanged and the price rises to $178, nearly $16.70 million worth of short positions will be liquidated. Conversely, if the sentiment shifts and the price drops to $172.9, approximately $36.06 million worth of long positions will be liquidated.

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This liquidation data indicates that bulls are currently dominating the asset, as long positions are double the short positions.

At press time, SOL was trading near $176.33 and has experienced a modest price surge of 1.2% in the past 24 hours. During the same period, its trading volume jumped by 30% indicating heightened participation from traders and investors amid whale participation.