Solana News Today: Solana Plunges 12.38% as Whale Sell-Offs Intensify Bearish Momentum

Solana (SOL) has experienced a sharp 12.38% price decline over the past week, dropping from $206 to a local low near $159, with the price currently trading around $162 [1]. This decline has pushed Solana into a descending price channel, with key technical indicators like the Relative Strength Index (RSI) and Stochastic RSI flashing bearish signals, highlighting the negative sentiment in the market. The price movement suggests that sellers are currently dominating the market, with the $154 support level becoming a critical area for potential price stabilization [1].

Whale activity has also intensified the downward pressure on Solana. According to data from CryptoQuant, large holders have ceased their accumulation efforts during the recent price rebound and have instead started closing positions. A significant whale deposited 108,016 SOL, valued at approximately $17.74 million, into centralized exchanges OKX and Binance, indicating a clear intent to sell. Historically, such actions by large investors have often been followed by further price declines [1].

Meanwhile, whale activity has shifted to the derivatives market. CryptoQuant’s Futures Average Order Size data reveals a notable increase in large whale positions in futures trading. This shift coincides with Solana’s open interest falling by 7.28% to $9.30 billion, while derivatives volume rose by 4.62% to $26.72 billion. These trends suggest that traders are increasingly favoring short positions amid the bearish market conditions. The Long/Short Ratio is now at 0.9231, indicating that short positions dominate, and data from Binance’s top traders confirms this bearish outlook, with a short position ratio of 2.57 [1].

Despite the bearish momentum from whales and futures traders, retail investors are stepping in to accumulate Solana at lower prices. CoinGlass data shows that Solana has seen negative Spot Netflow for seven consecutive days, indicating sustained buying pressure from smaller investors. At the time of reporting, the netflow was -$1.86 million, a significant improvement from -$95.49 million earlier in August. This trend suggests that retail demand may be forming a potential support floor for Solana’s price, even as large investors continue to offload holdings [1].

The outlook for Solana’s price movement remains cautiously bearish. With the RSI at 41 and the Stochastic RSI hitting 0.07, the market is showing signs of oversold conditions. However, if retail buying continues, it could help stabilize the price and potentially push it back toward $183. The critical $154 support level will be closely watched—if it holds, it may prevent further losses. A breach below this level could signal more aggressive selling pressure and a deeper correction [1].

In summary, Solana’s recent price drop is driven by whale sell-offs and a surge in short positions, while retail investors are showing resilience by buying the dip. The next key price level for Solana will be the $154 support, which could determine the next phase of its price movement. Market participants are advised to monitor technical indicators and whale behavior closely for signs of a potential reversal or continued decline [1].

Source:

[1] Solana Faces Bearish Pressure as Whales Sell and Retail Buyers Accumulate, $154 Support Possible. https://en.coinotag.com/solana-faces-bearish-pressure-as-whales-sell-and-retail-buyers-accumulate-154-support-possible/