Solana Drops 1.2% Amid Whale Activity, Market Sentiment Mixed

Solana's latest price was $166.00, down 1.197% in the last 24 hours. This price movement comes amidst significant whale activity, with a newly created wallet staking 296,422 SOL, worth over $50.8 million, after withdrawing from FalconX. This action highlights strong conviction from long-term holders. However, the broader market sentiment for Solana appears conflicted. While whales are locking in capital, derivatives data painted a nervous picture, hinting at an internal tug-of-war between stability and volatility. This divergence raised critical questions about Solana’s next decisive move in the current cycle.

Solana’s price action between $165 and $175 has triggered heavy liquidations, forming a tight zone of leveraged conflict. Long positions took the largest hit, with over $6.3 million liquidated, while short liquidations totaled just $767K. This imbalance signals bearish pressure and reflects aggressive overleveraging by bulls. Funding Rates on Binance hovered at +0.0035%—slightly bullish, yet not strong enough to shift sentiment. Open Interest remained stagnant at $6.85 billion, showing that both sides are holding back for clarity.

After a period of elevated attention, Solana’s social metrics are cooling rapidly. Social Dominance dropped to 4.21%, while Social Volume hit just 146 mentions—both considerably lower than the highs observed in April. This decline points to reduced retail interest and fading community momentum. Historically, reduced social buzz has correlated with weaker price action, particularly in altcoins. Therefore, Solana’s current price stagnation may persist if public interest does not rebound. Solana’s Spot Volume dropped by 20.53% to $11.44 billion, indicating diminished immediate demand. Yet, the derivatives landscape reveals a different story. Options Volume surged by 212.6%, and Options Open Interest increased 17.39%, reflecting a rise in volatility-based strategies. This shift suggests that while traders are reluctant to engage via spot or perpetuals, they are preparing for sharp moves through hedging or speculation.

Solana appears to be forming a classic cup and handle pattern on the daily chart, often considered a bullish continuation structure. The neckline rests at $260, significantly above the current market price. At press time, the RSI read 59.26, suggesting balanced momentum just below overbought territory. For the setup to validate, SOL must push above $180 with strong volume. However, weak sentiment and high liquidations are capping near-term upside. If bulls fail to break resistance, this formation could collapse into consolidation, delaying any meaningful bullish breakout in the coming sessions. Solana’s long-term structure remains constructive, but short-term signals show fragility. While whales accumulate, traders remain cautious. Without a breakout above key levels, SOL may drift or retrace before the next leg.

Solana kicked 2025 off with relentless on-chain activity, driving sustained price strength for SOL. Transaction throughput surged, active address count climbed, and network engagement hit fresh highs. However, despite the fundamentals, SOL closed Q1 down 34.7% from its $190 opening, mirroring broader market weakness as many peers chopped sideways. Now, as we head deeper into Q2, investors must ask: Can Solana deliver on both fronts — Robust fundamentals and a rebound in quarterly returns? Messari’s deep dive breaks down Solana’s Q1 blowout in key metrics. Chain GDP popped 20% QoQ to $1.2 billion, while stablecoin supply rocketed 145% to $12.5 billion – USDC alone up 148% to $9.7 billion. In fact, daily DEX volume hit $4.6 billion on average, spiking to a staggering $36 billion on the 18th of January — that’s more than 10% of Nasdaq’s daily trading. Big players like BlackRock and ApolloGlobal launched real-world assets (RWA). Plus, prediction markets like Polymarket added Solana support, showing the network is attracting serious capital and use cases. This hypergrowth over 90 days confirms Solana’s devs are methodically stacking bricks for the next big DeFi and Web3 wave, reinforcing AMBCrypto’s thesis that a spot Solana ETF could be closer than the market thinks. But let’s keep it real: Fundamentals are only half the battle. If SOL can’t turn this on-chain strength into price alpha and reward patient holders during the FUD grind, a pullback to the Q1 floor of $95 is on the table. And the early warning signs are flashing.

Solana kicked off Q2 at $124.56 and has since ripped to $167.72 – a clean 34.4% leg up. Early dip buyers are comfortably in the green, with cost basis anchored near the $95 Q1 floor, now sitting 75% above spot. Unrealized gains are piling up, but with late longs crowding in, the setup’s looking ripe for exit liquidity. On the 14th of May, Coin Days Destroyed (CDD) spiked to a monthly high of 1.7 billion as SOL printed $176.65. For context, a spike in CDD suggests older, high-conviction holders are offloading into strength. Since that peak, SOL has shed nearly 6%, echoing past cycles where major CDD blowouts coincided with market tops. Therefore, for Q2 to stay bullish, Solana needs more than just usage metrics. Instead, it needs a sustained bid-side conviction and fresh capital inflows to convert its operational strength into actual quarterly returns. Otherwise, this rally risks turning into another round of distribution masked by high activity.