Will Solana Break $100? Market Stirring with Whale Accumulation

▲ Solana (SOL)/ChatGPT generated image ©

Solana (SOL) continues its strong performance, outperforming the market average, driven by altcoin rotation and explosive on-chain activity, once again raising expectations of breaking the $100 mark.

According to CoinMarketCap, a cryptocurrency market data aggregator, on May 11 (local time), Solana traded at $96.44, up 3.54% over 24 hours. This significantly surpasses the overall cryptocurrency market's rise of 1.88% during the same period. The media cited a surge in trading activity within the Solana ecosystem and the movement of funds into the altcoin market as key drivers behind this increase.

Indeed, the trading volume on Solana-based decentralized exchanges (DEXs) surged by 340% this month. Furthermore, it was confirmed that a whale wallet, which had been dormant for a long time, purchased 67,648 SOL, worth approximately $6.23 million, on May 9. The media interpreted this not as simple speculative demand from individual investors but as a strategic accumulation move. It also reported that the potential for increased institutional participation, such as Western Union's stablecoin project, is fueling market expectations.

The overall market's altcoin rotation trend also boosted the upward momentum. CoinMarketCap's Altcoin Season Index rose by 4.08% over 24 hours and 30.77% over the past week. This was interpreted as a sign that funds are moving from Bitcoin (BTC) to more volatile altcoins. The media analyzed that if Bitcoin dominance weakens, an altcoin rally, including Solana, could continue further.

Technically, the sentiment is also positive. Solana has broken above the upper boundary of a multi-week descending triangle pattern. If the price maintains above its recent high of $94.03, the next target zone is projected to be $100-$106 based on Fibonacci extensions. The market is also paying attention to the upcoming Firedancer network upgrade as an additional bullish momentum.

However, $100 is considered a strong psychological resistance level. The media warned that if Solana falls below $90, the current breakout trend could be invalidated, potentially opening up a correction to around $87, near the 50-day Simple Moving Average (SMA). Currently, the market is driven by strong on-chain indicators and altcoin rotation simultaneously, but profit-taking and Bitcoin's potential correction are expected to act as short-term variables.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*