Solana News Today: Solana Crashes 12.38% as Whales Sell $17.7M and Short Positions Dominate

Solana’s price has experienced a significant drop of 12.38% over the past week, falling from $206 to a local low of $159, with the price stabilizing near $162 at the time of reporting [1]. This sharp correction has raised concerns among investors, especially as key momentum indicators reflect bearish trends. The price is now trading within a descending channel, with the next critical support level at $154 looming in focus.

Large whale activity has played a central role in this decline. According to Lookonchain, a major whale deposited 108,016 SOL, valued at approximately $17.74 million, into exchanges like OKX and Binance [1]. Such movements are typically seen as signals of potential selling pressure, as depositing assets into centralized exchanges often precedes or coincides with large-scale sales. Historically, aggressive whale selling has been associated with weakened market conviction and further price declines.

Interestingly, while whale activity in the spot market has diminished—CryptoQuant’s Spot Average Order Size indicates no significant whale trades recently—there has been a notable shift to the derivatives market [1]. The same data source shows that large whale positions have returned, but this time in futures contracts. Concurrently, Solana’s Open Interest dropped 7.28% to $9.30 billion, while Derivatives Volume rose 4.62% to $26.72 billion [1]. These figures suggest increased trading interest but with a bearish bias, as the Long/Short Ratio reached 0.9231, indicating more short positions than long ones. Data from Binance further supports this, showing a short-heavy positioning with a trader ratio of 2.57 [1].

Despite the bearish momentum driven by whale activity and derivatives positioning, retail investors have continued to accumulate. CoinGlass data reveals that Solana has seen negative Spot Netflow for seven consecutive days, with a current net outflow of -$1.86 million [1]. This contrasts sharply with the $95.49 million outflow recorded on August 1, highlighting a slowdown in selling pressure from smaller investors. In effect, while whales are exiting, retail traders are buying the dip, though it remains uncertain whether they can sustain these positions.

Technical indicators reinforce the bearish narrative. The Relative Strength Index for Solana has fallen to 41, entering the oversold territory, and its Stochastic RSI has hit a recent low of 0.07 [1]. These levels typically signal strong downward momentum, with sellers dominating the market. If this trend continues, Solana could face further losses, potentially breaking down to the $154 support level. However, sustained buying from retail investors could absorb selling pressure and support a rebound toward the $183 level [1].

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Source:

[1] Solana Whales Dump $17.7M – Is SOL’s $183 Comeback at Risk? (https://ambcrypto.com/solana-whales-dump-17-7m-is-sols-183-comeback-at-risk/)