Solana Price Forecast: Whales could aid SOL as trading platforms slash tokens
- Solana price is down over 15% in the last seven days, with indications of further losses.
- The downtrend comes after the SEC deemed SOL an unregistered security, causing a willingness among exchanges to delist the altcoin.
- Nevertheless, whales are not cutting the token loose, which may bode well for Solana price.
Solana (SOL) price is headed south, a directional bias influenced by the recent developments in the crypto ecosystem after the US Securities and Exchange Commission (SEC) filed a lawsuits against giant crypto exchanges, Binance and Coinbase.
Also Read: Cardano, Solana TVLs hold up despite SEC security label
Solana price fights to survive FUD as exchanges delist tokens
Solana (SOL) price is trading with a bearish bias after the SEC spilled disdain on SOL and several other tokens like Polygon (MATIC), Cardano (ADA), Cosmos (ATOM), and Decentraland (MANA), among others. As stock and crypto trading avenues try to steer clear of the regulator, Solana has featured amidst tokens to be slashed from select platforms.
Citing a blog post by Robinhood, "Based on our latest review, we've decided to end support for ADA, MATIC, and SOL." Robinhood crypto, the cryptocurrency trading arm of Robinhood, joins BinanceUS as the first tokens to indicate plans to delist SOL as part of compliance efforts. Notably, this has impacted Solana price.
Less than two days later, they have announced that they are delisting Cardano $ADA, Solana $SOL & Polygon $MATIC. All based on nothing but accusations by the SEC. What happened to due process? https://t.co/Jnh4zrq2G9 pic.twitter.com/CngDi4ciF3
— Coin Bureau (@coinbureau) June 9, 2023
SOL is down over 15% in the last week, nearly 5% on the day, sustaining a progressive downtrend as holders sell the altcoin with preference to tokens outside the radar of the federal regulator. This explains why prices for Bitcoin (BTC) and Ethereum (ETH) are rising. While Solana price is on a downtrend and could continue to do so before bulls garner sufficient momentum for a correction, on-chain data shows effort among whales to aid SOL.
Solana price hangs by a thread, whales on the other side
Solana price is held afloat by activity among whales. According to Santiment data, the percentage of total supply held by whales with more than $5 million has witnessed a noteworthy increase. On May 9, 52.30% of whales held the coin, whereas as of June 9, the percentage went up to 53.96% at the time of writing. This marks a 3.17% rise.
 [20.15.17, 09 Jun, 2023] Month-638219352148572972.png)
On a weekly timeframe, the number has risen 1.65%, from 53.13 on June 2 to 54.00 at the time of writing. This is a notable improvement considering the current market gloom and the SEC-infused FUD around SOL.
 [20.15.08, 09 Jun, 2023]week-638219350677906082.png)
For the layperson, the rise in the percentage of the coin total supply held by whales with more than $5 million shows that investors are not cutting the SOL loose. This could be a good sign for Solana price performance going ahead.
If traders, like whales, show optimism, Solana price could rise above the supplier congestion levels indicated by the 100-, 50- and 200-day Simple Moving Averages (SMAs) confluence at the $19.50 and $21.00 area. Flipping these resistances into supports could set the tone for SOL to tag the $23.94 or, in a highly bullish case, confront the next roadblock of $26.30. A break above this level could see Solana price collect loads of uncollected sell-side liquidity above.
Conversely, if bears prevail, Solana price could drop below the immediate support at $17.14 before collecting buy-side liquidity underneath.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
