Solana [SOL] was trading near $120, following a slight dip in the past 24 hours as of writing.
While on a daily scale, some traders seem to be selling; whales and institutions are buying. Are they hinting that now could be the time to buy before a continuation?
Understanding the ongoing Solana accumulation
A savvy whale with a 78% win rate on Solana is back to buying on Hyperliquid [HYPE].
Over the past week, the whale achieved a 100% win rate by closing two of his four trades. In total the trader has made $4.74 million in profits.
The trader opened a 5x long position in 164,642 SOL worth $19.78 million, with a liquidation price of $99.6803. However, this position is sitting in a floating loss of more than $221K, equivalent to 5.87%, as the entry price was at $121.4879.
On the same footing, institutions were purchasing the altcoin.
For instance, DeFi Dev Corp. [Nasdaq: DFDV] brought their total holdings to 2.564 million SOL. This is after buying 26,203 SOL tokens worth roughly $3.15 million since the 28th of September. In the past seven weeks, its holdings have grown by 11%.
Gauging the activity of the institution and the whale, it suggests that now could be the time to position for a continuation. Still, traders should also brace for the uncertainty of the markets.
SOL nears triangle breakout
On the charts, the buying activity is evident, with Solana consolidating around $120 in a triangle pattern. The pattern appeared after a two-week rally from $96 to $125.
A breakout would suggest a continuation of the trend, while a breakdown would be an invalidation. In the event of an uptrend, the target for bulls is $150, while $95 remains the target for bears if SOL enters a correction.
Moreover, sellers were in control with the SMI at 22 at press time. For instance, about 22.39K SOL was sold on the SOL/USDT market on Binance. However, the pattern is nearing a breakout as the price approaches the apex.
Still, Solana remains in a bullish market structure in both the short-term and long-term since the bottom formed in early June around $60. The altcoin has doubled its price in four months, with the next weekly hurdle at $150.
Final Summary
- A Solana whale and institution bought a total of $23 million in SOL tokens, indicating that accumulation was in progress.
- Solana is trading in a triangle pattern and is nearing the apex, which hints at an upcoming breakout or breakdown.
Credit: Source link