Solana (SOL) Price Crumbles as Whales Dump $7.6M of Tokens, Network Activity Weakens

Solana (SOL), a high-performance blockchain platform known for its speed and scalability, is facing mounting pressure as its price struggles to maintain crucial support levels.

Solana (SOL) price is facing increasing pressure as it struggles to maintain crucial support levels amid a confluence of bearish factors. A significant whale sell-off, declining network activity, and ominous technical patterns have contributed to a sharp decline in the altcoin’s price, erasing most of its March gains.

As Pivotal $125 Support Cracks, Solana (SOL) Technicals Point Deeper Toward $105

The $125 price level was a bastion of stability for Solana, according to analyst Ali Martinez. In his recent post, he highlighted the importance of this level, which is the “most important support level” for SOL. However, the failure to hold this support has implications for the altcoin’s price trajectory.

This breach could open the door for a deeper correction, as analyst warned of a potential descent toward $105. This level represents a significant retracement from Solana’s recent highs and could trigger further selling pressure.

Moreover, a large holder offloaded $7.6 million worth of SOL tokens, injecting a note of caution into the market. This move closely follows reports of a Bitcoin (BTC) whale dumping $500 million in various altcoins.

Declining Solana network activity also signals a potential loss of momentum, which could be closely observed by traders.

Solana’s price has fallen from $138 to $131 within hours, erasing most of its March gains. As the altcoin approaches the $125 price level, a surge in trading volume by 4% to $3.4 billion indicates increased selling pressure.

Technical Breakdown: Ominous Patterns Emerge As Solana (SOL) Sellers Take Charge

Solana’s technical charts are displaying ominous patterns, with analysts noting a technical breakdown that has unfolded in recent hours. The altcoin’s price has fallen from $138 to $131 within hours, erasing most of its March gains.

A surge in trading volume by 4% to $3.4 billion signals that sellers are now in control, pouring in to capitalize on the altcoin’s decline from $138.

However, despite the bearish technicals and whale activity, there are still some bullish signals. The total value locked in Solana’s DeFi protocols has risen to $1.37 billion, showing that liquidity is still flowing into the ecosystem.