Solana Drops 3% as Whales Sell 240,000 SOL, Retail Buys

Solana, a prominent altcoin, has recently faced significant downward pressure, retracing from a high of $154 to a low of $149. This price movement reflects intense selling pressure, as whales and institutions appear to be losing confidence in the altcoin's outlook. A notable whale wallet unstaked 1 million SOL, worth $139 million, nine days ago and has since sold 240,000 SOL valued at $35 million. This aggressive selling suggests a weakening market conviction among large entities.

Whales are not only selling but also taking a step back in the market. The Spot Average Order Size for Solana indicates that large orders from whales have disappeared, further signaling a bearish sentiment among these entities. However, retail investors seem to be taking a different approach. Despite the selling pressure from whales, small-scale traders are accumulating Solana. The Netflow for Solana has dropped to -19.69 million, indicating accumulation and declining sell-side risk. Historically, this kind of market behavior has preceded upward continuation, especially when markets are on the verge of a potential trend shift.

While some whales are selling, there is no strong evidence of widespread institutional or large-scale whale dumping in SOL at the moment. This selling appears to be part of a broader trend of rotation and profit-taking, rather than panic exits. Many whales seem to be adopting a wait-and-see approach, and recent price retracements are likely just healthy market corrections. Overall sentiment remains bullish, and Solana is expected to recover. If retail investors continue to accumulate, SOL could reclaim $154 and aim for $159. However, if retail sentiment shifts and they begin selling as well, the price could drop below the $149 support level, potentially leading to a further decline toward $140.