Recently, Solana (SOL) saw a notable price breakout, breaking over the resistance level of $201 that has been in place for eight months. Now the fourth cryptocurrency to exceed a $100 billion market valuation, Solana is referred to as a “Ethereum killer” due to its scalable blockchain technology.
Nevertheless, a strong sell signal may make it difficult to maintain these gains in the days ahead, even with this outstanding accomplishment.
Solana’s investors are pulling back
The number of active addresses on the network is decreasing, even while Solana’s price has increased. A Price DAA (Daily Active Addresses) Divergence as a result of this decline suggests possible selling pressure. A decrease in momentum may result from a price increase accompanied by a drop in active addresses, which frequently indicates that fewer investors are using the asset.
This discrepancy between active addresses and Solana’s pricing might be a warning flag. This indicator’s sell signal, which may limit future gains, illustrates market players’ uncertainty. The price stability of SOL may be impacted if this pattern continues since it may lead to a wave of profit-taking as investors try to lock in recent profits.
There are indications that Solana’s macro momentum is being overextended. Solana is presently in the overbought zone according to the Relative Strength Index (RSI), a crucial technical indicator.
In the past, when prices became overpriced, this frequently results in temporary corrections. A brief price decline might result from a possible reversal indicated by an elevated RSI.
If investor enthusiasm wanes, Solana’s upward momentum may encounter difficulties, according to the RSI’s overbought position. Because profit-taking has frequently followed earlier occurrences of high RSI readings, the danger of reversal is increased. It is recommended that traders keep a careful eye on the RSI because it may need to exit the overbought area in order to generate more profits.
SOL price prediction: Preventing a reversal
The price of Solana surged to a three-year high of $215, and it is now trading at $205. However, Solana’s price is getting closer to a possible support level around $201 because to a decline in address activity and an overbought RSI. If this level is not maintained, there may be further drops.
Solana may drop toward $186, a crucial support floor for the cryptocurrency, if investors start booking gains. Maintaining the recent upward trend requires holding above $186 since a decline below this level would portend further significant corrections.
On the other hand, Solana can try to overcome the next significant resistance level at $221 if it recovers from the $201 support level. By surpassing this threshold, Solana’s market capitalization would probably rise beyond $100 billion once again, reviving optimistic sentiment and reversing the present pessimistic view.
Tron’s Justin Sun cashes out $70 million after Ethereum rally, what’s next?
Justin Sun, the inventor of Tron, deposited 19,000 Ethereum at the cryptocurrency exchange HTX in an attempt to profit on the current Ethereum increase.
Justin Sun, the inventor of Tron, cashed out a portion of his Ethereum investment after the price of the cryptocurrency saw a robust 29% increase, reaching $3,200 over the previous week. By selling their shares, dormant ETH whales have reportedly also become active. Investors are anxiously awaiting the response of the biggest altcoin to these events.
Tron founder Justin Sun offloads ETH
The inventor of Tron has been profiting handsomely from last week’s surge in the price of Ethereum. At an ETH price of $3,202, Sun deposited 19,000 ETH to HTX around fifteen hours ago, which is equivalent to about $60.83 million.
His anticipated total earnings from these trades, therefore, are $69.36 million, representing a gain of around 5.69% in the wake of the recent spike in the price of Ethereum. According to information from Spot on Chain, Justin Sun made this transfer as part of a bigger 392,474 ETH that he purportedly obtained over three accounts between February 8 and August 5.
With his approximate total investment of $1.19 billion, his average buying price for Ethereum is $3,027. Therefore, the recent dumping is not a cause for concern because it is extremely little in relation to Sun’s whole holdings in ETH.
Justin Sun (@justinsuntron) appears to be cashing in on $ETH amid the latest market rally!
15 hours ago, he deposited the first 19,000 $ETH ($60.83M) to HTX at $3,202.
This was part of the net 392,474 $ETH he allegedly acquired at an average price of $3,027 (est. cost: $1.19B)… https://t.co/976PXgoJ80 pic.twitter.com/UCNpE0vnVp
— Spot On Chain (@spotonchain) November 11, 2024
Additionally, an early Ethereum ICO investor has reactivated their holdings after almost three years of inactivity, putting 1,555 ETH, or around $5 million, onto cryptocurrency exchange Coinbase, according to data from PeckShield Alert.
During Ethereum’s initial coin offering (ICO), this wallet holder initially acquired 6,292 ETH for a mere $1,951 investment. Since the ICO, the participant’s total holdings have increased significantly, reaching almost $20.15 million.
Dormant Ethereum whales are offloading?
Since November 7, the Ethereum whale that has 398,891 ETH (worth $1.28 billion) has sold 46,853 ETH for $138.8 million USDC at a price of $2,920, according to data from Lookonchain. The same whale sent an extra 12,886 ETH, or $42 million, to exchanges in the previous few hours. As a result, the whale still has $1.27 billion, or 352,036 ETH.
The giant whale with 398,891 $ETH($1.28B) has sold 46,853 $ETH for 138.8M $USDC at $2,920 since Nov 7!
7 hours ago, the whale transferred another 12,886 $ETH($41.24M) to sell.
The whale currently holds 352,036 $ETH($1.27B).https://t.co/O79eaAdgrk pic.twitter.com/8YGA6vx7iG
— Lookonchain (@lookonchain) November 11, 2024
This demonstrates that even if the Ethereum whales still own a sizable portion of their holdings, they are still looking for ways to profit from the current upswing.
The price of Ethereum (ETH) has risen 30% in the last week and is now trading above $3,200, with a market capitalization of just under $400 billion. Although there have been increasing demands for ETH to reach new all-time highs, the cryptocurrency will still need to rise by 60% from now to reach new highs.
According to Michael van de Poppe, a cryptocurrency market expert, the price of ETH may encounter some resistance in the $3,200 range before witnessing any movement in the near future. But in the upcoming months, he anticipates that the Ethereum ecosystem will perform better.
In a timespan of a week, $ETH has closed the gap to $3,200.
Expecting that we’ll have some resistance around this area, but continue to move afterwards.$ETH ecosystem to heavily outperform in the coming period. pic.twitter.com/k94qX9nQCY
— Michaël van de Poppe (@CryptoMichNL) November 10, 2024
On the other hand, the spot Ethereum ETF inflows turned healthy once again following the Donald Trump victory.
Blockchain analytics platform Santiment reported: “Expect any growth from Bitcoin, during this bull run, to see profits redistribute into Ethereum and potentially push it toward its own all-time high while its network activity looks very healthy”.
Shiba Inu’s 36% surge triggers Golden Cross, but sellers step in
Shiba Inu’s (SHIB) price reached a five-month high after a recent strong breakout. The well-known meme currency has gained positive momentum from its 36% increase, but there is still a chance that profit-taking investors could pull back.
Although the march has given the SHIB community fresh hope, sustainability will be crucial in deciding its future course.
Shiba Inu sees bullishness
A bullish “Golden Cross” pattern has resulted from the 36% increase in Shiba Inu prices over the last day. The consequences of the “Death Cross,” which was observed three months earlier, were reversed when the 50-day EMA (Exponential Moving Average) passed above the 200-day EMA. This trend has historically signaled a reversal, putting a stop to SHIB’s current difficulties and suggesting that the meme currency may see further growth in the future.
Given that it frequently sparks fresh investor interest and strengthens already positive sentiment, the Golden Cross is an important technical indication. Shiba Inu may continue its upward trajectory if this momentum continues. To overcome possible profit-taking pressures and resistance at crucial price points, the meme currency will require robust backing from market players.
Shiba Inu’s macro momentum indicates some prudence on a larger scale. According to the distribution of active addresses as of right now, about 30% of SHIB holders are profitable.
These investors are frequently more likely to sell, which might affect the price of the currency if there is a noticeable increase in selling pressure. This propensity for profit-taking might undermine SHIB’s current upward trajectory and restrict its capacity to sustain its rally.
Even if a bullish trend has been established, long-term holders’ capacity to keep their holdings and general investor confidence will determine Shiba Inu’s potential to rise steadily. The meme coin may have a setback if selling pressure starts to exceed purchasing demand, particularly when it gets closer to resistance levels.
SHIB price prediction: struggle ahead
The recent price movement of Shiba Inu (SHIB), which is currently trading at $0.00002583, is indicative of general market optimism. The meme coin is currently aiming for a move toward a crucial resistance level of $0.00002976. SHIB might hit $0.00003000, a psychologically significant price goal that would strengthen its position even more, if it could overcome this obstacle.
But traditionally, the $0.00002976 level has been a difficult barrier that has been tried several times without yielding a positive result. SHIB may retrace below $0.00002267, wiping out some of the recent gains, if it runs into resistance at this position once more. The coin’s durability and investor sentiment would be put to the test during this decline.
Additional losses might result with a subsequent decrease that goes below $0.00002267, invalidating the present bullish forecast. A change of this kind would signal the rally’s possible termination, raising investor nervousness and maybe leading to a return to lower Shiba Inu trading levels.
