Solana (SOL) continues to face turbulent times as heavy whale activity disrupts the altcoin’s trajectory on the market charts. Over the past week, substantial sell-offs by major investors have caused significant price fluctuations, leaving retail investors questioning what’s next for this blockchain powerhouse.
Whales Amplify Selling Pressure on Solana
Recent data reveals that a Solana whale offloaded 100,000 SOL worth $13.57 million, further fueling bearish momentum. After being rejected at $146 six days ago, SOL has traded within a narrow range of $130 to $140. As of today, the altcoin is valued at $133, marking a 1.94% decline on daily charts.
The offloading trend isn’t isolated. According to CryptoQuant, whales have been actively participating in the spot market since the 28th of November, indicating heightened trading activity. Some of this activity involves profit-taking to safeguard against further losses—a typical behavior during market uncertainty.
Staggering Whale Transfers
On-chain monitor EmberCN reported that a specific whale address transferred 100,000 SOL worth $13.57 million to Binance. Notably, this whale has been on a selling spree for the past eight months, transferring a total of 615,000 SOL (worth $107 million) in batches since April. Despite this aggressive sell-off, the whale still holds 733,000 SOL (valued at $99.16 million) and has earned 357,000 SOL in staking rewards over four and a half years.
This ongoing sell-off reflects a lack of confidence in the market’s direction. As whales shift their holdings, smaller investors are often left wondering if the downward trend will persist or if the asset will stabilize soon.
Market Indicators Suggest Further Downward Pressure
Solana’s price charts reflect the broader sentiment among investors. Recent data from CoinGlass reveals that Solana Spot Netflow turned positive after four days, standing at $2.66 million—a notable recovery from the previous day’s -$23.5 million. This indicates that while outflows have reduced slightly, bearish pressures linger.
Further analysis highlights a concerning trend. The Directional Movement Index (DMI) for Solana shows its -DI value sitting at 32, far above the +DI value of 16. This suggests overpowering downward pressure, with buyers struggling to regain control. Moreover, Solana risks breaching its crucial $130 support level, paving the way for further losses down to $126 if bearish sentiment persists.
Bullish Signals Could Offer Hope
For Solana to invalidate this bearish trajectory, bulls must push for a daily close above $140. Achieving this milestone would allow the altcoin to retest $146 and aim for the mid-band of Fibonacci Bollinger Bands at $178, breathing new life into the asset.
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Disclaimer: The information provided in this article is meant for informational purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.
