Solana [SOL] may have just pulled off one of its strongest moves.
According to Whale Alert, an unidentified whale just transferred 500,000 SOL to Binance on the 26th of September, and the total transaction was valued at roughly $60.5 million, putting the average cost basis at around $121. The key takeaway? SOL barely flinched.
Despite the potential sell-side, SOL closed the day down only 0.3% and then jumped 0.4% the following day, hovering around the $120 level. This suggests that SOL is able to absorb massive amounts of sell-side pressure and continue holding its short-term structure.
Given this momentum, it is not surprising that the smart money is increasing its positions in Solana.
Bitfinex whales’ SOL long positions skyrocketed, illustrating a substantial increase in bullish bets. At the same time, the Solana ETFs purchased 2.32 million SOL worth of approximately $278 million over the past two weeks, pushing total AUM to $2.283 billion.
With the rise in the long positions and the considerable accumulation in ETFs, the demand for the altcoin seems to gain significant traction. This boosts SOL’s price resilience, as the underlying bids and on-chain activity support the move. However, what if the on-chain liquidity is beginning to converge with the broader macro liquidity? If so, then Solana could have the liquidity setup to finally break above the $120 resistance and drive the rally higher.
Solana’s liquidity setup is getting too strong to ignore
Q4 could be off to a bullish start.
Global money supply climbed to a new all-time high of $103.66 trillion, suggesting a significant expansion of available liquidity in the final quarter of the year. More importantly, liquidity has been climbing steadily for months.
The Fed, ECB, Bank of Japan, and PBOC added around $1 trillion in August, marking the 10th consecutive monthly increase in global money supply. With major central banks still expanding liquidity, the situation could become increasingly relevant for risk assets like crypto as Q4 starts.
Interestingly enough, the impact of this liquidity expansion on Solana might already be starting to show. According to DeFiLlama, Solana’s total stablecoin supply has increased by more than 5% this week, adding more than $800 million in liquidity to the network. That surge has pushed Solana’s total stablecoin market cap to a new all-time high of more than $17 billion.
Why it’s important: With the underlying demand in Solana being strong, and the network seeing active on-chain utilization, the increased stablecoin liquidity on board could provide more capital for traders to deploy their dry powder across DeFi and the overall Solana ecosystem.
If this trend continues, while whale longs and institutional inflows continue to ramp up, then the market could very well see SOL entering Q4 with a demand setup that could push price above $120. This makes Solana’s liquidity setup its biggest catalyst yet heading into the new quarter.
Final Summary
- Solana is holding strong despite heavy selling pressure.
- Rising liquidity and whale demand could help SOL break above $120.
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