Solana (SOL) has taken a significant hit in the past 24 hours, with its price plummeting over 20% to trade near $113. This dramatic decline has wiped out over $65 million from investors’ wallets and sent shockwaves through the cryptocurrency community.
While the broader cryptocurrency market has been experiencing a downturn due to factors like geopolitical tensions and Japan’s interest rate hike, Solana’s steep drop has raised eyebrows. Some experts believe that the coin’s decline is not entirely organic but rather a result of calculated manipulation by large investors, often referred to as “whales.”
A former Coinbase angel investor has alleged that whales are intentionally driving down SOL’s price to induce panic selling among smaller investors. Once the price reaches a desired level, these whales are believed to accumulate the discounted tokens, positioning themselves for potential future profits.
Technical analysis suggests a bleak outlook for Solana in the short term. The coin has broken crucial support levels and is trading below its 200-day Exponential Moving Average (EMA). A daily candle closing below $122 could signal a further drop of up to 30%, potentially bringing the price down to $77. However, a close above $122 might indicate a potential price reversal to $155.
Despite the bearish sentiment, the Relative Strength Index (RSI) is currently in oversold territory, suggesting a possible price rebound. However, the decline in open interest, which measures the total number of outstanding derivative contracts, indicates waning investor confidence.
As the situation unfolds, Solana investors are left grappling with uncertainty. With liquidation levels looming at $100 and $130, the market remains highly volatile. Whether the recent drop is a result of market forces or strategic manipulation by whales remains to be seen.
