Solana, a high-performance blockchain known for its lightning-fast transactions and low fees, has recently captured the attention of cryptocurrency enthusiasts. As of September 12, Solana trades at approximately $235, reflecting a 4% surge in the last 24 hours. This remarkable performance is further highlighted by a weekly gain of around 15% and an 18% increase when looking back over the past month; if we zoom out to a three-month view, Solana has soared by over 55%. However, the cryptocurrency market is notorious for its volatility, and recent rallies have often encountered selling pressure, with profit-takers seizing gains quickly. Yet, promising indicators suggest that the bullish structure may be solidifying.
Whales Pick Up, Exchange Flows Confirm Strength
The supply distribution metric provides valuable insights into market dynamics, focusing on the amount of cryptocurrency held by wallets of varying sizes. It reveals that substantial holders—often referred to as whales and sharks—have resumed their accumulation of Solana. Since August 19, their collective holdings have risen from 57.81% to 58.95% of the total circulating supply. This uptick in whale activity can signal an underlying strength in the asset’s price action.
This accumulation trend is not to be overlooked. For instance, back on July 1, Solana was trading around $146, when whales had holdings of 58.69%. As the price escalated to $205, their proportion increased to 59.83%, showcasing a nearly 40% gain during this period. Their renewed acquisition as Solana hovers above the $230 mark suggests strong bullish sentiment, indicating that these key players anticipate further price appreciation.
Understanding Exchange Flows
This whale activity aligns well with exchange net position changes. For instance, on September 10, while Solana prices were rising, around 291,000 SOL entered exchanges, typically a sign of profit-taking. However, a day later, as Solana crossed the psychologically significant level of $227, the dynamics shifted dramatically, with a net outflow of 1.77 million SOL. This flip in exchange flows indicates that traders are retaining their assets, moving them off exchanges to avoid immediate selling pressure.
This trend marks a notable shift from previous weeks, where traders quickly liquidated their holdings at signs of price increases. Although the three-month averages of these metrics aren’t yet at prior all-time highs, they are approaching those levels, suggesting a buildup of market momentum that could catalyze yet another price surge.
Smart Money Bets on Breakout as Key Price Levels Form
In tandem with whale activity, the Smart Money Index—a metric that tracks trades from high-conviction crypto investors—has seen an uptick, increasing from 261.62 on September 7 to 290.14 today. This index often reflects a trend where investors buy into strength and sell during rapid rallies, indicating a growing optimism about a continued price ascent.
Analyzing the 4-hour Solana price chart reveals that SOL is currently trading within an ascending channel, a formation that often culminates in upward breakouts. The upper trendline presents the next vital test. A secure close above this line would confirm a breakout, with price targets projecting towards $244.
Support levels are solidified below the current price, with critical buy zones positioned at $227 and $224, ensuring additional safety nets for traders. Deeper support sits at $211; if Solana drops to this level, it could compromise the prevailing bullish structure.
Overall, the current setup for Solana appears optimistic, buoyed by both whale accumulation and smart money interest. However, traders should remain vigilant for breakout confirmations to gauge the effectiveness of the current bullish sentiment.