crypto

Solana Dump Far From Over? Whales Continue To Dump SOL

Published

4 months ago

August 22, 2024

The Solana dump looks far from over as whales continue offloading their SOL holdings during this market downtrend. The recent shakeup in the crypto space might have also contributed to these whales’ bearish sentiment towards Solana.

Crypto Whale Offloads $16 Million Worth Of Solana

In an X (formerly Twitter) post, the on-chain analytics platform Lookonchain drew the crypto community’s attention to a whale who has sold 114,300 SOL ($16 million) on Binance and OKX since August 4. This whale’s most recent sale came on August 20, when they sold 10,000 SOL ($1.41 million).

NewsBTC previously reported about a crypto whale that sold $86 million worth of Solana this year. This particular whale is also back in action, as on-chain data shows that they recently sold 20,000 SOL ($2.9 million). That brings this whale’s total Solana sale to 614,000 SOL ($89 million) since January 15.

Although the reason for these recent sales remains unknown, they could be related to the bearish sentiment in the Solana ecosystem. With its once vibrant meme coin ecosystem being threatened by other networks like Tron and Binance Smart Chain (BSC), Solana’s decentralized exchange (DEX) trading volume is declining, a metric that could ultimately affect its price.

Data from DeFiLlama shows that Solana’s DEX volume has dropped by over 20% in the last seven days. Meanwhile, Tron and BSC’s trading volumes are up by over 436% and 15%, respectively. This development is already weighing on Solana, as SOL’s price has remained tepid. Data from CoinMarketCap shows that Solana is one of the few cryptos in the top 20 crypto by market cap not to have recorded a gain in the last seven days.

Another reason for the recent bearish outlook on Solana is reports that the US Securities and Exchange Commission (SEC) had rejected the Chicago Board Options Exchange’s (CBOE) 19b-4 filings for the Spot Solana ETFs. The Commission is still said to be adamant that Solana is a security.

Some Whales Remain Undeterred

Despite the bearish outlook on Solana, some crypto whales remain undeterred and have seen this as an opportunity to accumulate more SOL. Two whales, in particular, recently invested millions of dollars in the crypto token—the first whale (9tuA8L) withdrew 30,000 SOL ($4.25 million from Binance and staked these tokens on August 21.

Meanwhile, the second whale (7CsCGy) also withdrew 26,245 $SOL ($3.72M) from Binance and staked these tokens on August 21. This move could undoubtedly be profitable, especially if Solana’s fundamentals pick up again. Crypto analysts like Ali Martinez had previously predicted that SOL could reach $1,000 in this bull run.

At the time of writing, Solana is trading at around $142, down in the last 24 hours, according to data from CoinMarketCap.

Solana price chart from Tradingview.com — SOL price recovers above $140 | Source: SOLUSDT on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

Source link

Bitcoin

Why $99,800 Is An Important Resistance To Break

Published

2 days ago

December 21, 2024

admin

Este artículo también está disponible en español.

The Bitcoin price is approaching the $100,000 level again after experiencing significant declines these past weeks. A crypto analyst has pointed out that the critical resistance level at $99,800 is crucial for Bitcoin’s next move. If the pioneer cryptocurrency can break through this level, it could trigger a significant breakout, potentially propelling Bitcoin past the $100,000 mark.

Bitcoin Price Faces Resistance At $99,800

Prominent crypto analyst Ali Martinez has shared a chart showing an In/Out of the Money Around Price (IOMAP) analysis of the distribution of Bitcoin wallets based on their purchase price. According to the analyst, the Bitcoin price is facing extreme resistance between the $97,500 and $99,800 price levels as it tries to breach $100,000 again.

Martinez noted that around this price range, approximately 923,890 wallet addresses had purchased over 1.19 million BTC. This price zone acts as an important resistance level because many Bitcoin holders may look to sell and break even, potentially exerting selling pressure.

In the IOMAP chart shared by Martinez, the green dots that signal ‘In the Money’ represent price levels below the current Bitcoin price, where wallet holders are in profit because they bought BTC at a lower value. On the other hand, the red dots that represent ‘Out of the Money’ show price levels of Bitcoin’s present value, where wallet holders are at a loss because they bought BTC at a higher price.

BTCUSD trading at $97,429 on the daily chart: TradingView.com

Lastly, the white dot indicates ‘At the Money’ and represents the current price of Bitcoin at an average of $98,676, where some crypto wallets see neither profit nor loss.

Below Bitcoin’s current price, the chart shows strong buying zones, which could provide strong support if the pioneer cryptocurrency experiences a potential pullback. Martinez has forecasted that breaking through the critical resistance range between $97,500 and $99,800 would signal the start of a bullish rally for Bitcoin, potentially leading it to a new all-time high.

Currently, the Bitcoin price is trading at $98,652, steadily rising to return to previous highs above $100,000. To a new all-time high, Bitcoin will have to surge by over 7%, surpassing its present ATH above $104,000.

Bitcoin’s Biggest Gains To Come After Christmas

A popular crypto analyst identified as the ‘Crypto Rover’ has expressed optimism about Bitcoin’s near-term price potential this Q4. According to the analyst, Bitcoin has historically experienced its most significant gains right after Christmas during the halving years.

The analyst shared a price chart showing Bitcoin’s market performance during each halving cycle. In the 2012 halving year, Bitcoin started a significant price rally, which extended into the following year. The same bullish trend occurred in the next halving years in 2016 and 2020, with Bitcoin hitting exponential price highs.

Based on this historical trend, Crypto Rover projects that Bitcoin could witness a similar bullish surge before the end of 2024, with the rally potentially continuing into 2025.

Featured image from Bloomberg Images, chart from TradingView

Source link

Bitcoin

Bitcoin Drops Below $98K—Is This the Perfect Buying Opportunity for Investors?

Published

2 days ago

December 21, 2024

admin

Bitcoin, the leading cryptocurrency by market capitalization, has recently experienced a significant and sudden price correction, sparking debate among investors.

Concerns have surfaced about whether this downturn signals the conclusion of the current bull cycle or merely represents a temporary setback.

While short-term holders face losses, long-term metrics provide a broader perspective on Bitcoin’s trajectory, as analyzed by CryptoQuant’s Avocado Onchain in a recent report.

Opportunity Or End of The Bull Cycle?

According to Avocado Onchain, the realized price for investors who entered the market during Bitcoin’s recent peak at $98,000 places them in a loss-making position.

However, for those who invested between one to three months ago, the realized price is significantly lower at $71,000, offering a cushion against the current correction.

Bitcoin UTXO Age bands.

Avocado pointed out that historical patterns from Bitcoin’s 2021 bull cycle reveal similar alternations between record highs and sharp corrections, suggesting that these dips may not necessarily indicate the end of the cycle. Instead, they have historically been “opportunities” for market rebalancing and subsequent growth.

A key indicator analyzed is the 30-day moving average of the short-term SOPR (Spent Output Profit Ratio). This metric tracks whether recent market participants are selling at a profit or a loss.

The current SOPR data reveals that recent short-term inflows into Bitcoin have yet to result in substantial profit-taking. Unlike previous cycle peaks characterized by aggressive selling, the ongoing correction appears subdued, indicating that the market may still have room for upward movement.

Bitcoin short-term Spent Output Profit Ratio

Bitcoin Short-Term Dips vs. Long-Term Trends

Additionally, Avocado Onchain highlights the importance of distinguishing between short-term corrections and broader cycle trends. Bitcoin’s tendency to rebound after corrections in past bull cycles reinforces the notion that the current downturn might not mark the cycle’s end.

These insights align with the behaviour of long-term holders, who often use corrections to consolidate their positions, strengthening market resilience.

Avocado concluded the analysis, noting:

For investors who have yet to enter the market, this may be an excellent opportunity to buy Bitcoin at a discount. Instead of succumbing to panic selling during short-term downturns, adopting a long-term perspective and a dollar-cost averaging (DCA) strategy could be a more effective approach.

At the time of writing, Bitcoin is seeing a gradual rebound in its price surging by 1.3% in the past 1 hour. Regardless, the asset still appears to be overshadowed by the bears as BTC remains down by 3.5% in the past day and 10.5% from its peak of $108,135 recorded last week.

Bitcoin (BTC) price chart on TradingView

Featured image created with DALL-E, Chart from TradingView

Source link

Analyst

Here’s Why The Bitcoin Price Continues To Hold Steady Between $96,000 And $98,000

Published

3 days ago

December 20, 2024

admin

Este artículo también está disponible en español.

The Bitcoin price has dropped below the $100,000 psychological level and is now holding between the $96,000 and $98,000 range. Crypto analyst Ali Martinez provided insights into why Bitcoin could be holding well within this range.

Why The Bitcoin Price Is Holding Steady Between $96,000 And $98,000

In an X post, Ali Martinez noted that one of the most important support levels for the Bitcoin price is between $98,830 and $95,830, where 1.09 wallets bought over 1.16 million BTC. This explains why Bitcoin is holding steady between $96,000 and $98,000 as investors who bought between this level continue to provide huge support for the flagship crypto.

As Martinez suggested, it is important for these holders to continue to hold steady as a wave of sell-offs could send the Bitcoin price tumbling even below $90,000. The flagship crypto dropped below $100,000 following the Federal Reserve Jerome Powell’s recent speech, in which he hinted at a hawkish stance from the US Central Bank.

This sparked a massive wave of sell-offs, as a Hawkish Fed paints a bearish picture for risk assets like Bitcoin. However, despite the Bitcoin price drop below, most Bitcoin holders remain in profit, which is a positive for the flagship crypto. IntoTheBlock data shows that 86% of Bitcoin holders are in the money, 4% are out of the money, and 9% are at the money.

These Bitcoin holders still seem bullish on the leading crypto as they continue to accumulate more BTC. In an X post, Ali Martinez stated that so far in December, 74,052 BTC have been withdrawn from exchanges, and this trend doesn’t seem to be slowing down.

Traders Anticipate A Bullish Reversal

Ali Martinez suggested that crypto traders anticipate a bullish reversal for the Bitcoin price from its current level. This came as he revealed that traders on Binance nailed the top, with 62.17% shorting Bitcoin while it was trading at $108,000. Now, Martinez stated that sentiment has flipped, with 55.44% of these trading now longing dips below $96,000.

Meanwhile, it is crucial for the Bitcoin price to hold this $96,000, as Martinez warned that if BTC loses this support, it could drop below $90,000. The analyst stated that based on the Fibonacci level, if Bitcoin loses $96,000, the next point of focus becomes $90,000 and $85,000. Meanwhile, from a bullish perspective, crypto analyst Justin Bennett suggested that the $110,000 target is still in focus for the Bitcoin price.