Solana News Today: Solana Tumbles 10% Amid Whale Sales and $635M Liquidations

Late July and early August 2025 witnessed a dramatic correction in the cryptocurrency market, with Solana (SOL) experiencing one of the most pronounced declines. After reaching a peak of around $190 in July, the token dropped nearly 10% to $177 by mid-August, driven by a combination of macroeconomic fears and aggressive profit-taking from traders. Over $635 million in leveraged positions were liquidated during this period, as long traders faced sudden intraday reversals and margin calls [1]. The sell-off was exacerbated by growing anxieties over U.S. tariff policies and broader economic uncertainty—two factors historically linked to instability in crypto markets [2].

Whale activity further intensified the downward pressure on Solana. Large-scale selling by influential investors, often referred to as whales, contributed to a sharp drop in the token’s price. Approximately $17 million worth of Solana entered the market during this period, reinforcing the bearish momentum and pushing prices lower [1]. This led to the liquidation of $57 million in long positions, compounding the negative sentiment [1]. Analysts warned that such whale-driven sell-offs could have a lasting impact on market confidence, particularly for those holding leveraged positions.

The technical outlook for Solana also turned increasingly bearish. Analysts observed that the token’s price trajectory continued to trend downward, with technical indicators suggesting a potential target of $120 [1]. This development heightened caution among market participants, many of whom were advised to adopt risk-mitigation strategies to avoid further losses. One analyst noted that the recent volatility in Solana presents a “risky environment in the short and medium term,” underscoring the need for careful navigation of the current market conditions [1].

While some traders were selling off their holdings, others were seizing the opportunity to accumulate. A notable whale was reported to have invested over $250 million in Bitcoin and Ethereum amid the crash, signaling a potential shift in market sentiment [6]. However, this optimism was tempered by the fact that a Hyperliquid whale also significantly expanded its short positions in Ethereum, a move widely interpreted as a bearish signal [3]. This divergence in whale behavior highlighted the uncertainty and mixed signals currently dominating the market.

The broader impact of the correction extended beyond Solana. Bitcoin, the largest cryptocurrency by market capitalization, fell below $115,200 as investor confidence waned. Meanwhile, the total value locked (TVL) in major DeFi protocols saw sharp declines, with some platforms experiencing over 50% reductions in a short span [4]. The interconnected nature of the crypto market meant that the Solana sell-off had ripple effects across other major altcoins, including Dogecoin and Cardano, both of which dropped over 7% in 24 hours [1].

Market analysts remain cautious, emphasizing the fragile state of liquidity and the heightened sensitivity of crypto assets to macroeconomic developments. Vikram Subburaj, CEO of Giottus, noted that traders should approach the current environment with caution, particularly when dealing with high-risk altcoins [1]. As the market continues to adjust to these challenges, the behavior of large investors will remain a key factor in determining the trajectory of Solana and other major cryptocurrencies.

The ongoing uncertainty underscores the inherent risks of a highly leveraged and speculative market environment. Investors are being urged to closely monitor macroeconomic indicators and whale activity to better anticipate potential market shifts. The recent correction serves as a stark reminder of the volatility and complexity that continue to define the cryptocurrency landscape.

Sources:

[1] title: Solana, Dogecoin, and Cardano lead decline amid $635 million crypto market liquidations

url: https://www.fxstreet.com/cryptocurrencies/news/solana-dogecoin-and-cardano-lead-decline-amid-635-million-crypto-market-liquidations-202508010604

[2] title: Bitcoin slips below $115200 as U.S. tariffs rattle markets

url: https://m.economictimes.com/markets/cryptocurrency/crypto-news/bitcoin-slips-below-115200-as-u-s-tariffs-rattle-markets-ethereum-solana-dogecoin-fall-up-to-8/articleshow/123038529.cms

[3] title: ETH Short: Unveiling a Massive Hyperliquid Whale's Bold Move

url: https://coinstats.app/news/df083a579005177e6c622101c48625d207d9616585ed47aada2d23d004652e1f_ETH-Short%3A-Unveiling-a-Massive-Hyperliquid-Whale%E2%80%99s-Bold-Move/

[4] title: Crypto Market Faces Drastic Sell-Off, Sending Shockwaves

url: https://en.coin-turk.com/crypto-market-faces-drastic-sell-off-sending-shockwaves-worldwide/

[6] title: $250M Whale Buy Follows $628M Crypto Crash

url: https://www.coinspeaker.com/whale-buys-250m-after-628m-crash/