Solana (SOL) has plunged to $116, marking a steep 12% decline over the past week as major cryptocurrency holders initiated a significant selloff. The price drop comes amid broader market uncertainty triggered by recent economic policy shifts, particularly Trump’s announcement of global tariffs that have rattled crypto markets.
Whale Activity Triggers Market Pressure
According to blockchain analytics platform Lookonchain, four major cryptocurrency whales have unstaked and transferred approximately $46 million worth of SOL tokens to exchanges, creating substantial selling pressure. The largest transaction came from wallet ‘HUJBzd,’ which moved $30.3 million in SOL, while three other significant holders collectively transferred an additional $16 million.
Market Impact and Technical Analysis
The mass exodus of whale holdings has triggered a cascade of selling pressure, with SOL experiencing a sharp 3% drop in just 24 hours. The token’s technical indicators suggest potential further downside, with the next major support level at $110.
Broader Market Context
The Solana selloff coincides with wider market turbulence, as recession risks have escalated to 53% following Trump’s tariff announcements. This economic uncertainty has particularly impacted alternative cryptocurrencies, with several major tokens showing significant weakness.
Expert Outlook
Despite the bearish pressure, some analysts maintain optimistic projections. Cryptocurrency analyst Brandon Hong suggests SOL could be approaching a major breakout from its 400-day trading range, though this contrasts with the current market sentiment and whale behavior.
FAQ Section
Why are whales selling Solana now?
The timing coincides with broader market uncertainty and potential profit-taking after SOL’s strong performance in recent months.
What’s the next support level for SOL?
Technical analysis indicates strong support at $110, with secondary support at $105.
Could this trigger a broader crypto market selloff?
While possible, market analysts suggest this appears to be Solana-specific selling rather than industry-wide panic.
As markets continue to process these developments, traders should maintain close watch on whale movements and broader economic indicators that could influence SOL’s price trajectory in the coming weeks.