Solana (SOL) Price Under Pressure: Whales Dump $17.7M
Solana's Price Decline: What's Happening?
Solana [SOL] has experienced a significant downturn, dropping 12.38% in one week, from $206 to a low of $159. Currently, the price is around $162, reflecting a 3.95% daily decrease.
This drop has pushed Solana into a descending channel, with indicators suggesting a bearish trend. While retail investors are buying, larger players (whales) are exiting the market.
Key Takeaways
- Solana's price tumbled 12% in a week due to whale activity.
- Whales are dumping tokens and increasing short positions.
- Despite retail buying, bearish momentum persists, potentially targeting $154 support.
Whale Activity: Spot Market Exodus
After a period of inactivity, Solana whales have re-entered the spot market, but not as buyers. Data from CryptoQuant shows:
- Whales had paused accumulating/selling during the market rebound.
- Recently, they've returned to close positions as the market declined.
According to Lookonchain, a whale deposited 108,016 SOL ($17.74 million) into exchanges like OKX and Binance, typically a precursor to selling.
Shift in Strategy: Derivatives Market
While spot market activity slowed, the futures market tells a different story. CryptoQuant's Futures Average Order Size chart indicates:
- Large whale positions have returned, focusing on derivatives.
This shift coincides with a 7.28% decrease in Solana’s Open Interest, now at $9.30 billion. Meanwhile, Derivatives Volume increased by 4.62% to $26.72 billion, suggesting renewed trading interest skewed towards bearish bets.
Short Positions Dominate
The Long/Short Ratio stands at 0.9231, indicating more traders are betting on further downside. Binance’s top trader data confirms this, with a position ratio of 2.57 favoring shorts.
Retail vs. Whales: Accumulation Divergence
Small-scale investors are still accumulating, as CoinGlass reports a negative Spot Netflow for seven consecutive days. The Netflow is currently -$1.86 million, down from -$95.49 million on August 1st.
In summary, whales are selling, while retail traders buy the dip. The sustainability of this retail accumulation remains uncertain.
Future Outlook for SOL
Analysis indicates strong downward momentum amid strengthening bearish sentiments. Technical indicators show:
- Relative Strength Index (RSI) declined to 41, approaching oversold territory.
- Stochastic RSI fell to 0.07, confirming strong selling pressure.
If the current trend continues, SOL may decline to the $154 support level. Sustained retail buying could absorb some selling pressure and potentially push SOL back towards $183.
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