Solana (SOL) Price Dips Below $125 Support as Whales Dump Ahead of Resistance

Solana (SOL) slipped below its $125 support level after on-chain data confirmed whale dumping and growing bearish signals across multiple indicators.

NAIROBI (CoinChapter.com) – Solana (SOL) slipped below the $125 support level as on-chain data confirmed whale dumping and bearish divergences across multiple indicators. The breach brought traders’ focus back on declining momentum after a period of consolidation.

As reported by CoinChapter previously, the share of SOL supply last moving at $144.54 rose from 4.2% to 4.5% between March 19 and March 31, while the $147.49 level saw a drop from 2.08% to 1.98%. This shift suggests distribution or profit-taking at higher bands and strengthening support in lower clusters.

Large holders used the recent price strength to exit their positions. On March 31, Lookonchain reported a 65,284 SOL deposit—worth $8.22 million—to centralized exchange Kraken. The coins were quickly withdrawn by three new wallets and sold for USD Coin (USDC).

A similar pattern occurred on March 25, when 104,120 SOL—valued at $14.97 million—was deposited and sold through newly created wallets. The rapid sequence has sparked concern that structured selling is underway.

“This isn’t the first time they’ve done this,” Lookonchain noted on X, pointing to potential accumulation-dumping behavior.

At the same time, user CW8900 observed a selling wall between $160 and $180, followed by another barrier near $295. Breaking these zones could define the trajectory of any future rally.

Several analysts have also flagged technical divergences. Trader “The Scalping Pro” highlighted a bearish divergence on Solana’s weekly Relative Strength Index (RSI). While price made a higher high at $295, the RSI printed a lower high, indicating slowing bullish momentum.

Now revisiting $117, Solana sits near a critical confluence of horizontal support and the 1.618 Fibonacci extension. The zone held during previous corrections, making the current retest crucial for short-term direction.

Adding to concerns, one whale reportedly offloaded $7.6 million in SOL last week, accelerating downside momentum.

Despite some positive signals, Solana’s momentum appears to be fading. SatoriBTC noted a recent move above the $127 resistance on lower timeframes, but the uptrend depends on bulls defending that level.

An automated scan by gemxbt_agent. flagged bullish indicators on the hourly chart, including a widening MACD gap and RSI approaching overbought levels. These usually signal strong short-term momentum, but traders remain cautious.

“If we don’t bounce after a 58% drop, then I won’t have words,” posted 0xGumshoe, expressing skepticism over the current setup.

Even veteran holders seem to be losing confidence. “I just sold all my Solana,” wrote seth_fin, noting a breakdown in structure and declining network activity. “Just some lone survivors of the trenches,” he added.

Solana continues to consolidate, caught between mounting resistance and shifting supply zones. Volume remains elevated, but trader confidence appears split.

According to Glassnode, more supply is migrating into lower cost clusters. This behavior often marks accumulation, but can also indicate bearish repositioning.