Solana News Today: Solana Faces Downward Pressure Amid Whale Sell-Offs and Alameda Unstaking

Recent developments surrounding Solana (SOL) highlight growing concerns for investors as significant whale sell-offs and a major unstaking event from Alameda are creating downward pressure on the asset. Over 226,000 SOL tokens have been moved to exchanges, signaling increased selling pressure and distribution risk. A notable $17.2 million sell-off by a single whale has further intensified concerns about potential capitulation and the sustainability of recent price gains [1].

Adding to these challenges, Alameda’s unstaking of $35 million worth of SOL has introduced additional volatility into the market. This event raises questions about the long-term commitment of large stakeholders and could lead to further short-term price instability. Analysts emphasize that the $170 support level is now a focal point for Solana’s price action, with a breakdown potentially leading to increased downside risk and renewed bearish momentum [1].

While the market has seen a recent rally, with the price surpassing $180 and breaking through key resistance levels, this surge has not translated into strong relative performance compared to Ethereum. SOL’s quarterly return on investment remains significantly lower than its counterpart, suggesting that broader market engagement with the asset may still be lagging [1].

Despite the recent bullish movement—marked by a 17% price increase and over $1.4 billion worth of unstaked SOL re-entering the market—investors are advised to remain cautious. The growing volatility linked to whale activity and unstaking has drawn attention to the $165–$170 support zone, where a critical test of Solana’s resilience is expected. Maintaining price above this level will be essential for confirming the strength of the current rally and the potential for future upside [1].

On the positive side, Solana’s DeFi ecosystem is gaining traction. Rising total value locked (TVL) and increased developer activity are reinforcing the platform’s long-term fundamentals. The success of DeFi protocols such as Remittix, which has raised over $18.7 million and issued 588 million RTX tokens, underscores the growing practical applications of Solana-based solutions. With the launch of its beta wallet scheduled for September, the project is expected to further solidify its position in the PayFi sector [1].

However, optimism is tempered by the reality that Solana faces stiff competition from Ethereum and emerging Layer-1 blockchains. Analysts remain divided on the asset’s potential to reach $202 or even $350. While some attribute the current momentum to the expanding DeFi ecosystem and increased real-world utility, others warn that market sentiment shifts and external competition could limit further gains [1].

The coming weeks will be crucial in determining whether Solana’s recent rally is part of a sustainable uptrend or a short-lived surge driven by liquidity events and speculative trading. Investors are advised to closely monitor whale activity and key support levels as the asset navigates this pivotal period in its market journey [1].

Source: [1] Solana price prediction: SOL’s DeFi ecosystem booming– enough to hit $350? Analysts debate competition (https://www.bitcoininsider.org/article/282414/solana-price-prediction-sols-defi-ecosystem-booming-enough-hit-350-analysts-debate)