Price analysis
Solana Price Fizzles Out As Whales Dump SOL For HYPE
Solana price has erased some of the gains made on Christmas Eve as most cryptocurrencies rallied. This sell-off has led to an increase in whale activity, with some notable ones swapping the SOL token for Hyperliquid’s HYPE. So, does the Solana coin have more gains to run or is the rally over?
Solana Price Downturn: What’s Behind the Decline?
Solana’s ongoing decline is mostly because of the weak sentiment in the crypto industry. Bitcoin price has retreated from near $100,000 this week to $96,000, while the popular watched crypto fear and greed index moved from extreme greed a few weeks ago to neutral. Cryptocurrencies often have a close correlation with each other.
Solana’s decline could be because of the ongoing profit-taking among investors after the coin more than doubled earlier this year. It is common for investors to sell highly profitable assets as the end of the year nears. As we will show below, there are some signs that some whales have started to dump SOL and moved to other cryptocurrencies.
Solana and other cryptocurrencies have also retreated after the Federal Reserve slashed interest rates by 0.25% in its December meeting. While this cut was good, the bank hinted that it would cut rates two times next year. That hawkish tone has led to higher bond yields, which historically affects risky assets.
More data shows that Solana’s DeFi TVL has been in a strong downward trend, which may be affecting its price. It dropped from $20 billion on December 20 to $5.7 billion on December 26.
Whales Dumping SOL: What Does On-Chain Data Reveal?
On-chain data analysis is a good way to understand a token price movement. Whales or large token holders, often have more weight than traders. In this case, there are signs that some whales have started to dump their SOL holdings.
One whale dumped 45k SOL tokens and swapped them to Hyperliquid’s HYPE toke. According to HypurrScan, one of his wallets holds HYPE tokens worth $9.5 million, and another has over $10 million. This dump partially explains why the SOL price crashed.
This whale has a long history with Solana as he initially staked 1 million tokens in 2020, and has benefited from its surge and staking rewards. As such, his decision to exit the SOL trade is a sign that he wants to capitalize on the recently launched HYPE token.
What’s Next for Solana Price? Will HYPE Replace SOL?
So, will the HYPE token replace SOL? Chances for the HYPE token replacing SOL are limited because the two are significantly different assets. Solana is a layer-1 network used by developers in key industries like DeFi and NFTs, whyle Hyperliquid is a perpetual futures trading platform.
The daily chart shows that the Solana price has been in a downward trend after rising to $265 earlier this month. It has formed a falling channel pattern and moved below the 50 Weighted Moving Average (WMA) indicator. The coin has flipped the key support at $210 into a support.
The falling channel has a close resemblance to a descending wedge, meaning that it may rebound, possibly in January. If this happens, the SOL price will rise to $265, its highest level this year.
A drop below the support at $175, its lowest level this month, will invalidate the bullish view and point to more Solana price sell-off, potentially to $120, the lowest point in September.
Frequently Asked Questions (FAQs)
There is no widespread evidence that whals are dumping Solana for the HYPE token. Our evidence shows just one whale did that.
Solana has dropped in the past few days because of profit-taking, but technicals suggest that a rebound cannot be ruled out.
Solana price may rally to about $250 in the next few days. Most of the gains, if any, will likely happen in the first quarter of next year.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Ethereum price opened trading at an 18-day peak of $3,650 on Sunday January 5. Derivatives markets data shows ETH traders mounting additional leverage LONG positions, anticipating further gains in the week ahead.
Ethereum price advances above $3,600 as traders brace for more bullish action
Ethereum price has been on an upward trajectory since the start of 2025, mirroring the crypto market recovery. Compared to the likes of Solana (SOL), Cardano (ADA) Avalanche (AVAX) which recorded gains in excess of 20% and ETH price gains was relatively subdued as ETH ETFs recorded negative outflows of $32.4 million last week. ‘
Despite sluggish ETF demand, ETH price continued its impressive rally on Sunday, pushing its 2025 gains into double digits. As shown in the chart above, ETH began trading on January 4 at $3,656, marking an 11% increase from its 2025 opening price of $3,310.
Bull traders deploy $1B leverage as crypto rally enters Day 5
Having breached the psychological resistance at $3,600, recent derivatives market trends shows a significant boost in investors confidence. ETH bull traders displaying aggressive trading activity, signalling widespread expectation of more price in the week ahead.
In alignment with this narrative, Coinglass’ Liquidation Map chart below compares the value of LONG leverage positions to active SHORT contracts. This provides insights in real-time swings traders’ short-term sentiment.
The chart above shows that ETH bulls traders have mounted leverage LONG contracts worth $1.09 billion around the current prices. In contrast, active SHORT futures contracts amount to $835 million, 30% lower than the bullish positions.
Such a wide disparity reflects overwhelming positive sentiment among speculative traders, anticipating that Ethereum’s ongoing rally will persist in the week ahead.
With bull traders displaying high risk trading behaviour in the derivatives markets, in raises incentives to make rapid spot purchases. As bulls move to amplify profits, this could potentially drive up ETH prices towards $3,700 in the week ahead.
ETH Price Forecast: $3,700 Resistance Looms Large amid Slow ETF Demand
ETH price reclaiming the $3,650 level has boosted short-term traders confidence as shown by bull traders’ dominance in the derivatives markets. However, If ETH ETFs demand remains lackluster, Ethereum bulls could struggle to breach the $3,700 resistance, putting over $1.09 billion LONG leverage contracts at risk of liquidations.
In terms of short-term Ethereum price forecast, the Parabolic SAR and Bull-Bear Power (BBP) technical indicators on the ETH daily chart hint at a potential breakout towards $3,750.
The Parabolic SAR indicator moving below the current price confirms active buying pressure, positioning ETH for a breakout toward the next significant resistance $3,760, aligning with the upper-Bollinger band.
More so, the Bull-Bear Power (BBP) reflects a strengthening bullish bias, supported by sustained positive readings over the past four trading sessions.
Bollinger Bands analysis indicates $3,760 as a critical resistance level, coinciding with the upper band, while $3,464, near the middle band, serves as immediate support. A successful close above $3,760 could open the door for Ethereum to test $3,850.
Conversely, failure to sustain this uptrend may result in a pullback toward $3,464, with a breach of this support risking further declines to $3,168.
As ETH ETFs show negative flows, strategic traders could watch out cautiously for the $3,760 and $3,464 levels closely for potential shifts in short-term market sentiment.
Frequently Asked Questions (FAQs)
Ethereum’s rally is fueled by aggressive bullish trading in the derivatives market, with bulls mounting $1.09 billion in leveraged LONG positions, while technical indicators like Parabolic SAR and Bull-Bear Power signal further upside potential.
With the boosting strong bullish momentum observed after reclaiming $3,600 level, Ethereum price could advance above $3,700 in the week ahead. However, with lackluster ETF demand the critical resistance at $3,760 poses a considerable challenges.
Key resistance is at $3,760 (upper Bollinger band), with immediate support at $3,464. A sustained breakout above $3,760 could target $3,850, while a drop below $3,464 risks further declines.
ibrahim
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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XRP price fell as low as $2.30 on Sunday, January 5, down 7% within the 24-hour timeframe. Recent trading data shows that XRP is witnessing intense sell-side pressure. Is Ripple price at risk of double-digit losses in the week ahead?
XRP Price Retraces 7% as Profit-Taking Begins
XRP price action has experienced downward volatility in the last 24 hours, after a remarkable start to 2025. As the global crypto market rally entered its 5th day, investors began to reshuffle capital across the markets, with the likes of XRP and Shiba Inu (SHIB) witnessing bearish tailwinds.
The TradingView chart above illustrates how XRP prices climbed 25% between December 30 and January 4. But after a 5-day winning streak, early profit-taking signals have emerged as XRP price retraced 7% from $2.50 to $2.33 in the last 24 hours.
With the broader crypto market sentiment still largely positive, recent declines in XRP transaction volumes suggest traders could be rotating gains towards other assets.
CryptoQuant Data Signals Growing Sell-Side Pressure
Failure to breach the $2.50 resistance on January 4 has dampened bullish momentum within the XRP markets over the last 24 hours. However, derivatives markets data show active holders ramped up sell-side pressure since January 2.
Indicatively, CryptoQuant’s Taker Buy/Sell ratio tracks and compares the volume of buy orders to sell orders executed at current market rates. Taker Buy/Sell ratio values below 1 signal bearish dominance, where sellers exiting at current prices outpace willing buyers.
The chart above shows that XRP Taker Buy/Sell ratio fell as low as 0.93 on Sunday, January 5, signaling that sell order volumes have outpaced demand in each of the 3 previous trading days. This evidently set the stage for the 7% price dip experienced in the last 24 hours.
If this shortfall in market demand persists relative to supply, XRP prices could face additional downside risks in the week ahead.
XRP Price Forecast: Bulls Could Regroup at $2.20 Support Level
XRP’s recent 7% price dip has been driven by a rapid profit-taking frenzy, with the Taker Buy/Sell ratio dropping to 0.93 as of January 5. This indicates a consistent dominance of sell-orders over buy-orders in the past three trading days, leading to intensified downward pressure.
If this imbalance between supply and demand persists, XRP could face further declines in the short term.
Trading volumes have been gradually decreasing, signaling weak participation from both buyers and sellers.
The Relative Strength Index (RSI) is trending downward at 53.69, suggesting more downside potential before approaching oversold territories.
In terms of short-term XRP price forecasts, immediate support lies at $2.27, which aligns with the lower Bollinger Band. A breach below that key XRP support level could extend the reversal toward $1.85.
On the upside, the recent peak at $2.50, which aligns with the middle Bollinger Band, acts as immediate resistance.
A sustained recovery above this level could pave the way for XRP to retake the $3 mark.
If XRP rebounds from $2.20 and buyers regain dominance, the price could climb back toward $2.35, and a breakout above $2.52 would invalidate the bearish outlook. However, if selling pressure continues and XRP loses $2.20 support, the next leg down to $1.85 could materialize quickly.
Frequently Asked Questions (FAQs)
XRP’s price drop is linked to profit-taking, with sell orders outpacing buys as indicated by a Taker Buy/Sell ratio of 0.93.
Immediate support lies at $2.20, with critical resistance at $2.50. Breaching $2.50 could open the door to a rally toward $3.
Yes, if selling pressure persists and $2.20 support fails, XRP could decline further to $1.85. However, a rebound above $2.50 could spark recovery.
ibrahim
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Cryptocurrencies remained on edge last week as Bitcoin struggled to move above the key resistance at $100,000.
The recent gains could accelerate this week as investors move back to the office after the Christmas and New Year break and as Donald Trump’s inauguration nears. So, here are some of the top cryptocurrencies to watch this week, including Ethereum Name Service, Aptos, and Flare.
Ethereum Name Service
Ethereum Name Service (ENS) — the biggest domain registrar in the crypto industry — isone of the top cryptos to watch this week. The network will unlock 1.46 million ENS tokens valued at over $52.79 million to contributors and the community. These unlocks are part of the monthly releases that will go on until November this year.
The ENS price soared to a high of $50.5 in December and then retreated by about 28% to a low of $30.47. That was a notable level since it was the highest swing in March last year. It has remained above the 50-day and 100-day Exponential Moving Averages.
Ethereum Name Service token’s outlook is bullish because it remains above key averages and has formed a break-and-retest pattern. If this pattern continues, the next point to watch will be its 2024 high of $50.50.
Flare
Flare (FLR), a popular Ethereum Virtual Machine, will be another crypto to watch as it unlocks tokens worth $47.6 million. These tokens will be notable because they will represent about 3.2% of the float.
The daily chart shows that the Flare token has formed a combination of a falling wedge pattern and a bullish flag. A wedge comprises two falling and converging trendlines, which are nearing their confluence level.
Flare is also supported by the 50-day moving average. Therefore, it will likely rebound, and possibly retest the important resistance at $0.0325, its highest level on June 5.
Aptos
Aptos (APT) is another coin to watch this week as it conducts its monthly token unlocks.
The native token of the Aptos blockchain will release 11.31 million tokens, which will be allocated to the community, core contributors, investors, and the foundation. Aptos will continue with these monthly unlocks until September 2032.
The Aptos network is doing well. Its locked value has risen to over $1.07 billion, and its stablecoins valuation moved to $646 million. Some of the top players in the ecosystem are Aries Markets, Echo Protocol, Thala, and Echelon Market.
On the daily chart, the APT token has rebounded in the past few days after forming a falling wedge pattern. It has retested the key support at $10 and is above the ascending trendline connecting the lowest swings since Aug. 5.
Therefore, the coin will maintain its uptrend if it is above the ascending trendline.
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