As the market continues to be in a downtrend, a newly created crypto wallet has made a big bet on Solana (SOL), setting an ideal example of the “buy the dip” strategy.
Today, March 13, 2024, blockchain-based transaction tracker Lookonchain posted on X (formerly Twitter) that a newly created wallet withdrew a significant 201,755 SOL worth $25 million from Binance, the world’s largest cryptocurrency exchange.
Current Price Momentum
With this substantial withdrawal, the asset’s price remained unchanged but registered a modest gain of 0.50% in the past 24 hours, currently trading near $124.30. During the same period, its trading volume dropped by 25%, indicating lower participation from traders and investors compared to the previous day.
Solana (SOL) Technical Analysis and Upcoming Level
However, one factor that seems ideal for this huge withdrawal is SOL’s price, which is at a crucial level near $120. According to expert technical analysis, the asset appears bullish, with its daily chart showing a bullish divergence, indicating that it is poised for a massive upside rally.
Based on recent price action and historical patterns, if the SOL daily chart holds above the $116 level, there is a strong possibility it could soar by 45% to reach the $180 level in the coming days.
Solana Traders’ Over-Leveraged Positions
With the ongoing price decline and SOL trading near a crucial level, data shows that bulls are strongly active at this point, betting on the long side, as reported by the on-chain analytics firm Coinglass.
Data reveals that traders are currently over-leveraged at $123 on the lower side and $128.3 on the upper side.
Additionally, the data shows that traders have held $54 million worth of long positions at the lower level and $90 million worth of positions at the upper side, indicating that they are taking advantage of the current negative market sentiment.
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