Solana Faces Intense Selling Pressure as Whale Activity Surges – What's Next for SOL?
Key Insights
Is Solana's Price Under Pressure?
A prominent Solana whale recently exited a $4.71 million position at a loss, intensifying bearish sentiment surrounding the altcoin.
Are Solana's Metrics Indicating Bearish Trends?
Yes, there are concerns whether Solana's demand zone can withstand the current selling pressure.
Solana (SOL) has been under significant selling pressure recently. Large holders are taking short positions at its trading price, exemplified by Whale DYzF92, who sold 33,366 SOL valued at $4.71 million, incurring a $230,000 loss. According to Lookonchain reports, these tokens were accumulated around seven months ago, indicating a change in sentiment among major holders.
Can the Demand Zone Handle Whale Pressure?
The whale exit adds strain to Solana's fragile market. AMBCrypto's analysis shows large wallets are stacking short positions, anticipating a downturn. CryptoQuant's data indicates a rise in whale orders, dominated by short positions. This raises the question: Will this surge in short orders push SOL lower, or will the demand zone hold?
On the daily chart, Solana is testing a demand zone around $140, where buyers have consistently stepped in. This zone is crucial for bulls and bears. If it absorbs the selling, SOL may maintain its structure; otherwise, a downside could accelerate.
Growing Bearish Momentum: Long/Short Ratio and ETF Inflows
Solana's long/short ratio fell below 1, indicating short positions' dominance. This aligns with recent whale behavior, reinforcing bearish indicators. Meanwhile, shrinking ETF inflows send cautionary signals. Despite positive inflows in the last 24 hours, Solana's overall trend has declined, signaling diminishing institutional interest.
Future Prospects for Solana
Despite the bearish bias, Solana has surprised short sellers before. A strong demand zone reaction could trigger a short squeeze. Traders are watching to see if bulls can reclaim control or if whales will influence SOL's next move.