Solana Market Analysis

Solana has been experiencing increased volatility and widespread whale activity, suggesting that sell pressure may be imminent. A significant whale has unstaked 134,902 SOL, worth roughly $19.3 million. The whale has placed several limit orders to sell 135,000 SOL between $171 and $294. This move puts additional pressure on SOL’s price performance, raising questions about whether large holders are beginning to sell their assets.

Whale movements are crucial for determining short-term price actions, as their sell-offs can significantly increase supply in the market. Instead of executing a single market dump, the current whale limit orders indicate a strategic approach, spreading sales over a broad price range. This method allows for a gradual withdrawal from holdings, minimizing immediate price shocks.

Historically, the market reacts cautiously when whales unstake and place large sell orders, leading to fears of imminent liquidation. Traders might hesitate to drive prices higher if they can’t absorb the new supply. SOL currently trades around $142, facing difficulties in holding above key support levels. If it falls below $130, further declines towards the psychological support level of $100 may occur.

For SOL to regain bullish momentum, it needs to break above $167. However, significant buy pressure will be required to overcome resistance, as there are major sell orders above $171. Although these sell orders do not imply an immediate collapse, they could create further pressure on SOL’s price.

SOL may stabilize and continue to trend upward if buying interest persists despite increased supply. Conversely, if demand decreases, more retracement could follow. Investors should pay close attention to whale transactions and volume trends to anticipate Solana’s next significant move.