- SOL dropped 11% this week, falling below $200, with bearish momentum gaining strength.
- Whale addresses rebounded to 5,098, signaling renewed accumulation despite recent sell-offs.
- Key support sits at $185, while breaking above $197 could spark a recovery toward $211.
Solana (SOL) has had a rough week, shedding nearly 11% in value as it failed to break the $220 resistance level. After that rejection, SOL slid below the critical $200 mark, signaling a surge in bearish momentum. However, recent whale activity offers a glimmer of hope for a potential rebound despite the prevailing bearish sentiment.
Whale Accumulation: A Potential Turning Point?
Over the past few weeks, whales—those holding at least 10,000 SOL—have been a major focus. Between December 28 and January 2, the number of these addresses dropped sharply from 5,096 to 5,025, suggesting significant sell-offs among large holders. This kind of movement typically points to reduced confidence or profit-taking, both of which increase selling pressure.
But there’s been a change. As of January 8, whale addresses have rebounded to 5,098, indicating renewed accumulation. This could signal improving sentiment and lay the groundwork for a potential recovery. Although SOL’s price remains under pressure, this uptick in whale activity might reflect a shift in confidence—one that could stabilize or even lift the price in the midterm.
SOL’s Bearish Momentum Intensifies: What the Indicators Say
The Average Directional Index (ADX), a key measure of trend strength, has risen to 42.6, up from 37 just the day before. This shows that the bearish trend is gaining momentum. The ADX, which scores trends on a scale from 0 to 100, flags values above 25 as strong trends, and SOL’s rising score indicates sellers are firmly in control.
Further reinforcing this, the directional movement indicators tell a clear story. The +DI, tracking buying pressure, has plummeted to 10.1 from 31.5 over the past three days—a steep decline. Meanwhile, the -DI, which measures selling pressure, surged to 33.1 from 8.6 in the same period. This sharp shift underscores the dominance of bearish activity in the market.
Price Prediction: Will SOL Reclaim $200?
The current technical picture for Solana isn’t rosy. Short-term exponential moving averages (EMAs) have crossed below their longer-term counterparts—a bearish signal known as the “death cross.” This pattern coincided with the drop below $200, with SOL now eyeing support at $185. A failure to hold this level could lead to further declines, targeting $176 as the next key level.
On the flip side, recent whale accumulation offers a hint of optimism. If buying activity picks up and sentiment shifts, SOL could challenge resistance at $197. Breaking above this mark could clear the path for a recovery to $211, a potential 12.8% gain from current levels.
Final Thoughts
Solana’s price action reflects a market under stress, with bearish indicators dominating. Yet, the steady accumulation by whales hints that major investors may see value at these levels. For now, all eyes are on SOL’s ability to hold support at $185 and whether bullish momentum can return to reclaim $200. As always, navigating this volatile market requires patience and a sharp eye on the key levels ahead.
