In the early hours of Monday, Solana (SOL) achieved a new yearly high, momentarily surpassing the $35 mark. This significant milestone coincided with the commencement of Solana’s annual Breakpoint event, an occasion that has spurred speculation among investors about its potential impact on SOL’s price.
However, there is another critical factor at play, at least in the short term, influencing SOL’s price action. Keen observers of the market have noticed a substantial sell wall for SOL at the $35 price level. Gumshoe, an analyst at Step Finance Growth, highlighted the presence of a stacked-up bid to sell SOL on Coinbase, with more than 385,000 SOL (approximately $13.4 million) listed between $35.10 and $35.20.
The identity of the entity responsible for this significant Solana (SOL) sell wall has prompted various speculations. Some members of the Solana community believe it may be FTX, unloading some of its SOL holdings, while others speculate it could be a major investor seeking to protect their position from liquidation. Still, there are those who suggest that the $35 SOL sell wall coincides with Bitcoin’s attempt to breach the $35,000 mark and may eventually be breached if bearish investors fail to maintain their position.
SOL Maintains Bullish Momentum Despite Selling Pressure
Despite trading in close proximity to the $35 resistance zone, SOL has maintained a bullish outlook, having gained 9% in the past seven days. A subsequent update revealed that the substantial SOL sell wall has decreased by over 100,000 SOL (equivalent to $3.5 million) in less than six hours. However, approximately 256,000 SOL (valued at $8.9 million) still stand in the way, potentially impeding SOL’s ascent beyond the $35 threshold.
The Solana community remains optimistic that the excitement surrounding the Breakpoint event and any forthcoming announcements may generate significant buying pressure to offset the substantial selling demand. A broader bullish perspective, fueled by the potential approval of a U.S. spot Bitcoin ETF, could further bolster SOL’s position.
In any case, SOL continues to be among the top-performing cryptocurrencies in 2023, as the layer-1 blockchain strives to distance itself from its previous association with the now-collapsed FTX platform. Since the beginning of the year, Solana has garnered increased interest from both users and developers, allowing SOL to maintain its place among the top ten cryptocurrencies by market capitalization.
