Solana spiked nearly 17% in the last two days going from a low of $16 to a high of $21. SOL is now hovering around the $20 mark and another leg up may lead to a $22 re-test if the markets remain on the front foot with positive CPI data numbers. However, recent data indicated that a Solana whale transferred $10.2 million worth of SOL to Coinbase.
The transaction involved a total of 537,352 SOL tokens moved from a decentralized platform to Coinbase in one single transfer. However, the reason for the movement of tokens to the exchange remained unknown. It is not confirmed if the whale dumped $10.2 million worth of Solana and cashed out.
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However, it is likely that the whale made good profits from the recent 17% spike and cashed in on the returns. The markets remain on a slippery slope due to the banking crisis and upcoming CPI data report and the whale might have sold the tokens at the right time before the markets head south.
Solana: Should You Buy SOL Now?
Solana is facing resistance at $20 and it needs to push above $22 for continued bullish momentum. SOL reached a high of $26 this year before retracing in price last month. The cryptocurrency markets are awaiting the CPI data numbers that could chalk out its next path for the coming weeks.
Now that Solana is around $20 and trading close to its yearly highs, it is currently advised to remain cautious. If the markets dip post the CPI report, SOL could most likely fall under the $17 mark. Buying the dips on Solana is advisable as the cryptocurrency has a long way to reach $40 post the FTX-Alameda fiasco.
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At press time, Solana was trading at $20.39 and is up 3.6% in the 24-hour day trade. SOL is down 92.16% from its all-time high of $259, which it reached in November 2021.