Solana News Today: Solana Falls 6.6% as $165 Support Tested Amid $57M Liquidations

Solana (SOL) has retreated below the $165 level, triggering concern among short-term traders amid a broader market downturn that has led to over $57 million in leveraged liquidations. The asset has lost more than 6.6% in the week leading up to August 3, 2025, and traders are now closely monitoring the $160 level as a potential support zone [3]. Despite the sharp drop, long-term holders are showing no signs of panic, instead increasing their holdings and moving more SOL into cold storage, a trend often associated with accumulation rather than capitulation [2].

On-chain data from Glassnode highlights the growing confidence among long-term investors, with the Hodler Net Position Change metric surging by 102% since July 30. This indicates a strategic shift in holding patterns, with larger participants continuing to add to their positions amid the volatility [2]. Such behavior is often a precursor to a potential rebound, especially when combined with capitulation signals. On August 2, the Realized Profit/Loss Ratio hit 0.15, a 30-day low, suggesting that recent sellers were exiting at a loss. This kind of behavior is typically observed near cycle bottoms and indicates that weaker hands are being shaken out, potentially reducing downward pressure [1].

Technical indicators also show early signs of stabilization. The RSI for Solana is currently at 41.65, nearing the oversold threshold, which could signal a reversal if buying interest increases. Additionally, the On-Balance Volume (OBV) has flattened after a prolonged decline, suggesting that selling pressure is waning and that bulls may have a window to regain control [2].

While the short-term outlook remains uncertain, the broader on-chain and whale-driven trends suggest a developing base around $165. This level appears to be attracting continued accumulation, especially as institutional activity has recently provided a stabilizing influence. For example, on July 25, Solana held firm at $170 amid a $367 million institutional inflow, reinforcing the idea that major players remain optimistic about the asset’s long-term potential [4].

In the larger crypto landscape, Ethereum has been gaining traction, driven by new projects and speculation around ETF developments, which could offer long-term optimism for the broader market. However, Solana remains in a tug-of-war between short-term traders and long-term holders, with the latter showing no signs of backing down. As the market continues to test key support levels, the persistence of long-term investors and growing institutional interest may yet prove to be a turning point [1].

Overall, while volatility persists, the accumulation activity and capitulation signals suggest that the worst of the decline may already be behind. Whether this translates into a sustained recovery will depend on broader market sentiment and continued confidence from key holders.

---

Source:

[1] AMBCrypto – Solana traders panic as SOL falls below $165

https://ambcrypto.com/solana-traders-panic-as-sol-falls-below-165-but-theres-more-to-the-story/

[2] AInvest – Solana Long-Term Holders Accumulate 102% More

https://www.ainvest.com/news/solana-news-today-solana-long-term-holders-accumulate-102-tokens-12-38-price-drop-2508/

[3] AInvest – Solana Drops 2.55% Amid $57M Liquidations, Whale Activity

https://www.ainvest.com/news/solana-drops-2-55-57m-liquidations-whale-activity-2508/

[4] XT.com – SOL Stabilizes at $170 Amid Massive $367M Institutional Inflows

https://www.xt.com/es/blog/post/sol-stabilizes-at-170-amid-massive-367m-institutional-inflows

[5] Instagram – Ethereum is up ~43% this month, fueled by Project Crypto

https://www.instagram.com/reel/DM5EdIkI75C/