The cryptocurrency market is closely watching Solana as recent whale activity and technical signals point to a potential retest of key support levels. SOL is currently trading at $219.35, showing signs of weakness after experiencing a 7% daily decline. Market participants are analyzing whether this is a temporary setback or the beginning of a more extended correction.
Large whale transfers have captured the attention of traders and analysts. Over 2.5 million SOL tokens, worth approximately $836 million, were moved to Binance in several large tranches. These substantial inflows to exchanges often suggest that holders might be preparing to liquidate positions, creating potential sell pressure in the market.
At the same time, $54 million in SOL was transferred to Coinbase Institutional, which could indicate strategic redistribution rather than pure liquidation. This contrast has left traders questioning whether whales are preparing for a major market swing or simply repositioning their assets.
Technical analysis reveals that SOL is consolidating above the critical $214-$220 support zone, which has acted as a foundation for the recent uptrend. The daily chart shows an ascending trendline stretching from April that continues to provide structural backing for the bullish case.
However, technical indicators are flashing warning signs. The DMI indicator shows +D crossing below -D with ADX at 31, a setup pointing toward further downward pressure. The last time this alignment occurred, Solana price dropped to $126 before staging a powerful 62% rebound.
On-chain metrics paint a concerning picture for Solana. Daily Active Addresses have fallen nearly 27% in a week, dropping from 2.6 million to 1.9 million. This decline underscores weakening user participation, raising concerns about the sustainability of current price levels.
The divergence between price performance and shrinking activity creates risks for SOL. Reduced participation could constrain transaction volumes and ecosystem development, both vital for maintaining bullish momentum. This declining engagement now stands as a critical factor shaping investor perception and confidence.
Despite these concerns, the derivatives market still leans bullish. The OI-Weighted Funding Rate remains slightly positive at +0.0074%, showing that traders are still paying a premium to maintain long positions. This behavior reflects some confidence in potential upside, though it also increases the risk of sudden liquidations if momentum weakens further.
Repeated rejections near $240 show that buyers currently lack conviction to push prices higher. If the current support holds, Solana could potentially rebound toward the $260-$270 range. A decisive move beyond $248 would strengthen the case for an extension toward $325 in the following sessions.
Conversely, a breakdown beneath support may expose the altcoin to extended volatility, especially with whale activity intensifying on centralized exchanges. The market appears caught between conflicting signals, with exchange inflows highlighting looming risks of sell pressure while institutional transfers suggest strategic repositioning.
Weighted sentiment has also turned negative, with readings around -1.09 showing that bearish voices currently dominate the market conversation. This downturn in sentiment follows weeks of inconsistent optimism that repeatedly faded after short-lived spikes.
Short-term swings remain likely for SOL, but the longer-term chart continues to outline opportunities for gradual appreciation. While immediate pressures may push prices toward a retest of the $200 level, historical patterns suggest that such movements often precede sharp rebounds once selling pressure exhausts itself.
Price action around the $214-$220 zone remains pivotal, serving as the base for any attempt to climb higher. With increased whale-driven sell pressure, Solana may need to retest its support zone before staging a rebound toward $260 in the coming sessions.
The current market value of Solana sits at a fragile but pivotal position that could define its short-term direction. Ultimately, whale activity continues to dictate Solana’s immediate path as the market weighs the impact of these large transfers against the overall technical and fundamental outlook.
The post Solana (SOL) Price: $836M Whale Transfers Signal Possible $200 Support Test appeared first on Blockonomi.
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