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Solana price struggles as whales withdraw 139,000 SOL, indicating bearish trends and potential support at $130 amid market volatility. By Ronny Mugendi 2 days ago Updated 1 day ago
Highlights
- Solana (SOL) price struggles under $140, now below crucial support.
- Whales unstaked $19.5M SOL, indicating potential sell-off.
- Bearish market trends could push SOL price to $130.
Solana price has experienced a notable decline as whales have begun to unstake substantial amounts of SOL tokens. This has contributed to increased market volatility and bearish trends. The movement has raised concerns about the future trajectory of the token’s value.
Solana Price Drops As Whales Withdraw 139,000 SOL
On-chain data tracker Lookonchain reported a significant withdrawal of 139,000 SOL tokens by a whale, leading to heightened concerns over the asset’s stability. The movement coincided with a sharp decline in Solana’s market price, which reduced from recent highs around $161 to current levels near $137.
Lookonchain
Moreover, this series of withdrawals is not isolated, as historical data indicates a pattern of similar large-scale unstakings corresponding with price drops.
The recent whale activity correlates with a broader trend, where large holders are seen reducing their positions in response to unfavourable market conditions. This has resulted in a sudden influx of SOL tokens into various exchanges, potentially gearing up for a sell-off.
Market Response and SOL Price Technical Outlook
Following the whale’s withdrawal, Solana price struggled to maintain its position above technical support levels. Analysis shows that the price broke through a key resistance line, historically providing substantial support during bullish phases.
Moreover, crypto trading indicators signal increased selling pressure and a possible continuation of the current bearish trend. For instance, analyzing the Moving Average Convergence Divergence (MACD) on the daily Solana price chart, we can observe that the MACD line is below the signal line, indicating bearish momentum.
The histogram, which visualizes the gap between the MACD line and the signal line, shows increasing bearish bars. This suggests that the selling pressure is intensifying. This bearish trend is a signal that traders may be increasingly pessimistic about Solana short-term price prospects
In addition to technical setbacks, the cryptocurrency market is entering a period of heightened volatility as it approaches the end of the quarter, which traditionally brings more volatile price movements. This environment may exacerbate the impact of large whale withdrawals, potentially leading to further declines.
Further analysis suggests that the Solana token could find potential support at $130, corresponding with the Fibonacci retracement level of 0.236. This level could be a crucial point for price stabilization following recent declines.
TradingView
Implications for Investors and the Solana Ecosystem
The unstaking and potential selling by whales could lead to a decreased staking ratio, which is crucial for the network’s security and transaction validation process. A lower staking ratio might deter new investors concerned about the network’s long-term viability.
However, it is essential to note that Solana remains a major player in the blockchain space, with ongoing innovations and project launches that could stabilize the price in the future.
On the flip side, a recent analysis by CoinGape suggests that while immediate impacts seem bearish, there could be potential for a longer-term recovery. According to the analysis, as liquid staking listings increase, SOL price might target $150.
At the time of writing, SOL price is trading at $137.19, marking a 1.84% decline over the last 24 hours.