The price of Solana (SOL) hit a new yearly high in the early hours of Monday, briefly surging above $35. The new milestone coincides with the start of Solana’s annual Breakpoint event, with investors actively speculating on how major event announcements could impact prices.
However, there is another catalyst that could determine SOL’s price action, at least in the short term. As keen market participants have observed, there is a huge selling pressure for SOL at the $35 price zone. Step Finance Growth analyst Gumshoe noted the stacked-up bid to sell SOL on Coinbase, with more than 385,000 SOL (appr. $13.4 million) listed between $35.10 and $35.20.
Someone on Coinbase does NOT want SOL to break $35
I wonder why… pic.twitter.com/GobUxH829F
— gumshoe (@0xGumshoe) October 30, 2023
Different speculations abound regarding the person behind the huge Solana (SOL) sell wall. While some in the Solana community believe it is the FTX estate offloading some of its SOL holdings, others reason it might be a major investor protecting their position from liquidation. Still, others believe that the $35 SOL sell wall coincides with Bitcoin’s attempt to break the $35,000 mark and may eventually be breached if bearish investors fail to hold the line.
SOL Maintains Bullish Outlook Despite Selling Pressure
After gaining 9% in the past seven days, SOL continues to maintain a bullish outlook despite trading closer to the $35 resistance zone. In a follow-up post, it was noted that the huge SOL sell wall has declined by over 100,000 SOL ($3.5 million) in less than six hours. However, some 256,000 SOL ($8.9 million) remain, which could hinder SOL’s progression above the $35 mark.
The manlets are relentlessly bidding
Every SOL bought at this level, is a heroic act of camaraderie towards the Solami community
Almost 50% to go, lets see if it happens tonight https://t.co/kKYPwGpiyj pic.twitter.com/26Wtho4dZK
— gumshoe (@0xGumshoe) October 30, 2023
The Solana community remains hopeful that the hype surrounding the Breakpoint event and any potential announcement might create substantial buying pressure to match the huge selling demand. A broader bullish perspective in view of a potential U.S. spot Bitcoin ETF approval might also help SOL’s course.
Either way, SOL remains one of the best-performing crypto assets of 2023 as the layer-1 blockchain tries to break free from the shackles of its entanglement with the collapsed FTX platform. Since the turn of the year, Solana has seen an uptick in user and developer interest, pushing SOL to return and maintain its place within the top ten cryptocurrencies by market capitalization.
