After an impressive 200% rally, Solana’s Seeker Token is now grappling with significant market challenges as traditional investors, often referred to as ‘smart money,’ have begun to exit their positions. Recent on-chain analysis indicates a drastic 56.48% reduction in Seeker holdings by these savvy investors, clocking in around 8.5 million SKR.
This sell-off correlates with the token’s downward trend after it dipped below the Volume Weighted Average Price (VWAP), a critical indicator of average trading prices. Analysts view this breach as a troubling shift from a previously bullish sentiment to a bearish trend, prompting short-term smart money investors to preserve their capital amidst rising uncertainty.
Whale Accumulation Surges Despite Smart Money Exit
Interestingly, while smart money has chosen to retreat, whale wallets have made a notable move. These affluent investors have ramped up their holdings by 40.78%, now owning approximately 56.49 million SKR. This accumulation trend occurred alongside a gradual decline in Seeker’s price, pointing to a potentially strategic decision by the whales to capitalize on what they may perceive as a short-lived pullback in the market.
Moreover, the Money Flow Index (MFI) has also highlighted a divergence: while prices fell, the buying pressure indicated by the MFI rose. Such signals often imply a strategic accumulation phase for large investors, although these moves do not ensure an immediate uptick in prices, especially with significant selling pressure from retail investors lingering.
Exchange Inflows Heighten Selling Pressure
Counterbalancing whale accumulation is a marked increase in exchange inflows. Over the past 24 hours, data shows a 10.94% surge in exchange balances, with approximately 44.8 million SKR entering exchanges. This trend suggests that retail investors are taking profits or liquidating their positions, adding substantial selling pressure on the market.
The spike in SKR entering exchanges amplifies concerns about potential price declines, as it increases the available supply for sale. The On-Balance Volume (OBV), a critical metric that gauges buying and selling momentum relative to price movements, continues to trend downward. This trend underscores the weaker buy signals supporting Seeker’s recent rallies, raising further concerns about its price stability.
Technical Outlook for Seeker Token
Looking ahead, the technical outlook for Seeker remains uncertain, given the dual forces of smart money exits and retail selling pressure. A breakdown below the $0.028 support level could expose Seeker to additional downside risks, potentially reaching as low as $0.0120. Conversely, in order to regain bullish momentum, the token needs to reclaim the $0.043 resistance level. Success here could lead to an ascent towards the next significant resistance at $0.053.
Nevertheless, the primary challenge for Seeker will be overcoming the prevailing negative sentiment that is pushing prices lower. Unless buying momentum shifts significantly, with a sharp increase in demand, the risks could remain skewed towards further declines.
