Solana Stuck in $122–$145 Range as Whales Contend: Future Outlook for SOL

Summary:
Solana (SOL) has faced significant market pressure, trading within a tight range of $122 to $145. Amidst developments within its ecosystem, caution prevails as liquidity-driven market moves dictate price direction. Two prominent whale addresses showcase opposing positions, hinting at a potential significant shift in the market. Additionally, Coinbase's new support for SOL deposits may influence future activity.

Key Takeaways

Solana's price is currently struggling within the $122 to $145 range due to market hesitation and reduced buying interest.
A noteworthy tension exists among whale investors, with significant opposing leveraged positions on SOL.
Coinbase has expanded support for SOL, enabling easier transfers between Solana and its Base network.
Concentrated liquidity between $121 and $133 indicates potential for forced liquidations in the short term.

Solana stuck in $122–$145 range as whales clash: What's next for SOL?

Current Market Status of Solana (SOL)

As of December 24th, Solana is under notable pressure, trading below a key short-term support level. Despite ongoing developments within its ecosystem, the market remains cautious, with liquidity-driven actions dominant in daily trading. Multiple attempts to regain higher price levels have faltered, diminishing bullish sentiment and heightening short-term bearish risks.

Recent observations indicate that Solana's price has stayed within the broader range of $122 to $145. Sellers continue to exert control as upward moves fail to generate consistent buying interest, keeping traders focused on liquidation levels rather than pursuing further trends.

Solana Price Movement
Source: TradingView

The Relative Strength Index (RSI) for Solana hovers around the neutral 40 mark, indicating weak momentum and limited directional strength. Additionally, the Moving Average Convergence Divergence (MACD) remains below the signal line, pointing to persistent bearish pressure without clear signs of a recovery.

Will Whale Activity Determine Solana's Next Major Movement?

Recent on-chain data from Onchain Lens highlights a significant divide between two major whale addresses holding leveraged positions in SOL. Whale “0x0e4” has taken a substantial 20x long position in SOL, facing losses exceeding $5.78 million, compounded by other longs in BTC and HYPE that bring total unrealized losses close to $8.5 million.

Conversely, whale “0x35d” has maintained a profitable 20x short position in SOL valued at around $11 million, which appears to be gradually decreased, indicating that this whale is engaging in controlled profit-taking instead of a blanket exit from the market. This whale also holds leveraged positions in BTC and ETH, accruing total profits exceeding $27.7 million.

Infrastructure Development: Coinbase Expands SOL Transactions

In a recent announcement, Coinbase unveiled support for SOL deposits and withdrawals through its Base network, representing a significant development. This integration facilitates direct transfers between Solana and Base, eliminating the need for conventional third-party bridges. This connection allows users to access Solana's rapid ecosystem alongside Ethereum-based liquidity on Base.

Users can now utilize SOL as an ERC20 token within decentralized finance applications native to Base. Market observers have pointed to the reduction in transaction friction and improved cross-chain accessibility as major advantages of this development, although availability may remain limited in several jurisdictions.

Concentrated Liquidity Observations

Analyzing the 48-hour liquidation heatmap, it becomes evident that liquidity is densely packed between the $121 and $122 levels. This area signifies a high concentration of leveraged long positions vulnerable to forced liquidations, as recent price movements have not cleared this liquidity.

48-Hour Liquidation Heatmap
Source: CoinGlass

Conversely, upside liquidity is primarily situated in the range of $128.5 to $129.5, with additional levels around $131.5 to $133. These zones characterize stacked short positions that could become attractive as momentum shifts. Until then, price responses remain subdued, with corrective rebounds lacking vigor.

Final Thoughts

As Solana navigates the liquidity range and whale dynamics, its future price movements will largely depend on market behavior and infrastructure developments. Continued observation of these elements may provide insights into Solana's next strategic direction.