Solana: 134K SOL staked in 3 days – But is the bottom in yet?

• A whale’s activity heightened in the past three days, withdrawing another 47,154 SOL worth $7.98M from Binance .
• SOL’s bottom could not be in, but a run on the lows at $120 to price in the unlocks could result in a reaction to the upside.

A whale has shifted a large sum of Solana [SOL] from Binance into staking, specifically, 47,154 SOL, valued at approximately $7.98 million, was recently withdrawn and staked.

Over the last three days, this whale has staked a total of 134,482 SOL, worth about $23.58 million.

This highlights a growing preference for staking among investors. It may be due to the declining allure of memecoins, which often offer high volatility, but less stability compared to staking rewards.

Source: Solscan

Staking SOL aids in securing the network and provides a steady return. This makes it an attractive long-term investment amidst the current instability of meme-based investments.

The rise in staking activities could stabilize SOL’s price by reducing its circulating supply. However, if many investors decide to unstake simultaneously, it could increase selling pressure and negatively impact SOL’s price.

This shift to staking suggests a more mature approach to cryptocurrency investments, focusing on long-term gains over speculative short-term trading.

Why SOL bottom is not in yet?

Analysis of Solana indicated a potential approach to a significant support level of around $120.

This region acted as both resistance and support over the past year, making it a critical point for the asset’s near-term trajectory.

The analysis highlights anticipating a bottom close to this level. It is expected that upcoming token unlocks will not cause the sharp price movements often feared. Instead, the price could remain around $120 to account for the unlocks.

If SOL price action sweeps liquidity below the $120 level and holds above it, SOL could stabilize or recover post-unlock, affirming the resilience of this level.

Source: TradingView

Conversely, if this support breaks under sustained selling pressure, SOL might decline further towards lower supports, possibly testing new lows for the year.

This could lead to a potential dip just below $100.