Solana soars 9% as whales make waves

• Solana’s volume hit $4.46 billion for the first time in the year.
• SOL added 9% as the strong bull trend persists.

Recently, there has been a notable increase in large transactions by Solana [SOL] whales. Data showed a significant volume of the tokens being transferred to exchanges. Given this recent activity, is it possible that we will witness a gradual reduction in SOL’s gains?

Whales move tokens to exchanges

On the 12th of November, Whale Alert reported two substantial Solana transactions, each exceeding $30 million. The first transaction involved the transfer of 325,222 SOL, valued at over $18.6 million, to the Binance [BNB] exchange.

325,222 #SOL (18,666,993 USD) transferred from unknown wallet to #Binancehttps://t.co/ECEpdMJM72

— Whale Alert (@whale_alert) November 11, 2023

The second transfer consisted of 199,998 tokens, worth more than $11.5 million, sent to the Coinbase [COIN] exchange.

These transfers signify that sizable wallets are strategically moving assets to exchanges, likely to capitalize on the prevailing price trend.

Solana’s volume responds to large transactions

AMBCrypto’s examination of Solana’s volume chart showed that November saw record-breaking volumes. Notably, daily volumes have surpassed previous levels witnessed throughout the year.

On the 11th of November, the volume reached $4.46 billion, marking the second-highest volume for the year. At the time of writing, the volume had already reached around $4.46 billion, with the possibility of this figure increasing by the end of the trading day. 

Source: Santiment

This surge in volume suggested increased trading activity, likely driven by increased attention. According to CoinMarketCap, the press time volume has increased by over 13% in the last 24 hours.

All bets on Solana rise

Coinglass’ data revealed that Solana was experiencing its highest Open Interest (OI) volume for the year at the time of publication. Chart analysis indicated a consistent upward trend in OI since the beginning of November. As of this writing, it has reached over $760 million.

Also, the last instance of SOL having such a high OI volume was around May 2022. The surge in OI signified an inflow of capital into Solana, with traders actively opening new positions.

Additionally, on the 12th of November, Solana observed its highest positive funding rate of the year, registering at 0.07%. This indicated that traders are optimistic about the continued upward movement of the price. As a result of this, traders are now taking long positions.

The combination of increased Open Interest and a positive funding rate suggested an increased level of market interest. Also, it suggested confidence in Solana’s potential for further gains.

How did SOL react?

AMBCrypto’s analysis of Solana’s daily timeframe chart showed that it was doing big numbers. As of this writing, it was trading with almost a 6% increase in value at around $59. This price level has not been reached in over a year, highlighting the significant positive moves.

All indicators thus aligned to suggest a strong bull trend for SOL.

Source: TradingView

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The Relative Strength Index (RSI) was over 80 at press time as well, reflecting a strong bull trend. Additionally, the Moving Average Convergence Divergence (MACD) was trending above zero, further supporting the notion of a positive move.

The combination of these indicators painted a picture of a thriving market, with a strong upward trajectory for SOL.