Solana Price Forecast: Unstaking $500M SOL Amid Bitcoin’s $100K Milestone
Solana’s price fell to $245, down 9% from its all-time high of $264, as investors unstaked $500 million in SOL, indicating profit-taking behavior. Despite Bitcoin reaching $100,000, the Bull Bear Power indicator shows weak buying momentum, potentially leading to further declines as resistance at $250 looms.
On Thursday, Solana’s price faced resistance at the $245 mark, reflecting a 9% decrease from its previous all-time high of $264. Recent on-chain data highlights that investors have unstaked approximately 2.2 million SOL, equating to around $500 million, indicating a trend of profit-taking despite Bitcoin’s positive surge past $100,000. The Bull Bear Power indicator shows diminishing buying momentum for Solana, suggesting a concerning shift in market dynamics that could hinder any potential recovery beyond the $250 resistance level.
Bitcoin’s ascension over the $100,000 threshold has sparked significant bullish sentiment across various altcoins, including Solana. Following Donald Trump’s nomination of Paul Atkins as SEC chair, which is perceived as crypto-friendly, altcoins experienced upward movement. However, Solana’s 4.2% rebound post-Trump’s announcement was notably less vigorous compared to Bitcoin’s 8% gain over the same period, potentially signaling bearish undertones.
The environment surrounding Solana has prompted investors to withdraw substantial staking amounts, as evidenced by the decline in the total staked value from 389.4 million SOL to 387.2 million SOL in a week. The withdrawal of such a significant SOL volume from staking contracts dilutes short-term supply, counterbalancing the bullish momentum expected from Bitcoin’s performance. This has raised caution among market participants, particularly since significant stakers play a crucial role in the overall stability and bullish sentiment of the network.
With profit-taking occurring alongside a rapid decrease in staking deposits, Solana could encounter substantial resistance as it seeks to reclaim stability above the $250 mark. The Chande Kroll Stop indicator indicates immediate resistance at this level, while the BBP indicator remaining in negative territory signifies prevailing bearish sentiment. If Solana cannot maintain a close above the $245 to $250 range, it risks a decline towards the next support level at $230, potentially leading to further downward movement.
Recent developments in the cryptocurrency market, particularly the performance of Bitcoin, have influenced the trading dynamics of altcoins like Solana. With Bitcoin breaching the $100,000 mark, a wave of optimism swept through the market. However, amidst the positive sentiment, significant profit-taking from Solana investors raises concerns about the sustainability of its price. Key indicators of market performance, along with stakeholder behavior, provide vital insights into future price trends for Solana, which faced a notable decline following its all-time high.
In summary, Solana appears to be at a pivotal juncture following a robust week marked by Bitcoin’s breakout. Investors’ recent actions of unstaking $500 million in SOL reflect a cautious approach in light of burgeoning profit motives. As the marketplace grapples with potential bearish pressures, technical indicators suggest that without renewed buying interest, Solana could face challenges in surpassing the key resistance levels and may see further declines in the near term.
Original Source: www.fxstreet.com
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