Solana (SOL) Price Falls Below $190 Despite Whale Accumulation

Solana (SOL) price has experienced a sharp decline, falling nearly 11% in the past seven days after failing to break the $220 resistance level. Following that rejection, SOL dropped below the critical $200 threshold, reflecting intensified bearish momentum.

Despite this downturn, whale activity shows signs of renewed accumulation, with large holders steadily increasing their positions over the last five days. These developments indicate the potential for a price rebound, although SOL’s immediate outlook remains under bearish pressure.

SOL Whales Keep Accumulating

The number of addresses holding at least 10,000 SOL saw a sharp decline from 5,096 to 5,025 between December 28 and January 2, reflecting significant sell-offs among large holders during this period. Tracking these so-called whales is crucial because their buying and selling activities often have a substantial impact on the market.

When whales reduce their holdings, it can indicate a lack of confidence or profit-taking, leading to increased selling pressure and potential downward movements in price.

Number of Addresses with at least 10,000 SOL. Source: Glassnode.

However, the number of whale addresses has started to recover, increasing from 5,025 on January 2 to 5,098 as of January 8. This rebound suggests renewed accumulation by large investors, which could be a positive sign for Solana price stability or recovery in the near future.

Despite SOL being in a downtrend and losing 14% over the past two days, the growing whale activity may signal improving sentiment and a possible foundation for a price reversal if the trend continues. Such movements often reflect a shift in confidence that could support SOL’s price in the midterm.

Solana DMI Shows Sellers Are In Full Control

The Average Directional Index (ADX) for SOL is currently at 42.6, up from 37 just one day ago, indicating a strengthening trend. The ADX measures trend strength on a scale from 0 to 100, regardless of direction, with values above 25 signifying a strong trend and those below 20 reflecting weak or absent momentum.

This rising ADX confirms that SOL’s current downtrend is intensifying, suggesting that bearish momentum is dominating the market.

SOL DMI. Source: TradingView

Further supporting this, the directional indicators show that the +DI, representing buying pressure, has dropped significantly to 10.1 from 31.5 over the last three days, highlighting a sharp decline in bullish activity. Conversely, the -DI, which tracks selling pressure, has surged to 33.1 from 8.6 during the same period, indicating a substantial increase in bearish momentum.

These shifts reinforce the current downtrend and suggest that Solana price could face continued selling pressure unless buying activity strengthens significantly to counteract the negative sentiment.

SOL Price Prediction: Can It Recover the $200 Threshold?

Solana EMA lines indicate a bearish outlook, with short-term EMAs crossing below all longer-term lines one day ago. This death cross is a significant bearish signal, coinciding with a sharp price drop from $200.

If the current downtrend persists, SOL price may test the critical support level at $185. Failure to hold this level could lead to further declines, with $176 as the next key target.

SOL Price Analysis. Source: TradingView

However, recent whale activity provides a glimmer of optimism, as large holders have been steadily accumulating SOL over the past few days. This accumulation could signal growing confidence among major investors, potentially setting the stage for a reversal.

If bullish momentum returns, SOL price could challenge the resistance at $197. A breakout above this level could pave the way for gains toward $211, representing a potential 12.8% recovery from current levels.

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