Solana Drops 30% in Five Days, Whales Buy the Dip

Solana (SOL) has recently experienced a significant decline, reaching its lowest price since September 2024. The cryptocurrency dropped to $120.35 during Monday’s trading session, marking its fifth consecutive day of decline since March 6. This downturn is part of a broader market pressure affecting the crypto space.

The current price action is concerning for many traders due to the approaching “death cross” pattern. This technical indicator occurs when the 50-day simple moving average (SMA) falls below the 200-day SMA on price charts. Currently, Solana’s 50-day SMA is at $188.71 and is trending downward, while the 200-day SMA is at $184.03. The two lines are expected to cross in the coming days, signaling bearish momentum.

A death cross typically indicates that short-term momentum is weaker than the long-term average price movement. However, the last time Solana experienced a death cross in September 2024, it marked a bottom before the cryptocurrency began to rise. In the two months following that pattern, SOL reached highs of $264 after posting a golden cross pattern.

Despite the current market weakness, some large investors are seeing opportunities. A major whale accumulated 195,000 SOL, worth approximately $23.2 million, from exchanges during the market dip. This move is interpreted as a strong sign of confidence in SOL’s future prospects. Additionally, Cumberland DRW staked 48,182 SOL worth about $5.72 million, which removes tokens from circulation on exchanges and can reduce selling pressure.

These moves by large players suggest a “buy-the-dip” strategy, indicating that major holders believe prices will recover. Several traders have shared optimistic outlooks for Solana, with some suggesting that the cryptocurrency appears to be following its 2021 pattern, which preceded a major bull run. Another analyst identified a strong demand zone between $110-$127, which aligns with current price levels.

If SOL’s price action follows its previous death cross from September 2024, it might confirm a bottom before rising again. However, if support fails, key levels to watch include $109 and $88. At the time of reporting