Solana (SOL) Price Prediction: Correction Extends Below $90,000 as a Whale Dumps $198M of SOL

On February 26th, Wednesday, the crypto market continues to struggle under persistent bearish momentum as Bitcoin extends its correction below $90,000.

The crypto market continues to struggle with persistent bearish momentum on Wednesday, February 26th, as Bitcoin extends its correction below $90,000.

The bearish sentiment is also impacting the altcoin market, with top assets like Solana (SOL) now facing a significant correction, edging closer to key support levels.

Active whale selling and a sharp decline in SOL’s transfer volume highlight this coin’s vulnerability to further downside.

Solana Whales Unload $198M SOL Amid Bearish Trend

According to on-chain data from Lookonchain, a large entity unstaked 1,366,028 SOL (valued at $198 million) and transferred it to FalconX just seven hours before reporting. Afterward, FalconX deposited 440,202 SOL ($62.6 million) into Binance and Coinbase.

A whale unstaked 1,366,028 $SOL($198M) and transferred to #FalconX 7 hours ago.

#FalconX has deposited 440,202 $SOL($62.6M) to #Binance and #Coinbase in the past 7 hours.https://t.co/5Nvenc4Gh8 pic.twitter.com/gachaLLc1a

— Lookonchain (@lookonchain) February 26, 2024

Amid the current market correction, such a whale exodus could further add selling pressure and escalate negative sentiment among investors.

Meanwhile, analyst Ali Martinez highlighted a concerning trend in Solana’s network activity. Solana’s total transfer volume has plummeged from $1.99 billion in November 2024 to a mere $14.57 million today, a dramatic drop in on-chain engagement.

The declining trend signals reduced investors’ participation and potential liquidity concerns, backing the risk of a prolonged correction.

Solana Price Nearing Major Support Test

In the last five weeks, the Solana price witnessed a V-top reversal from $295 high to $138 currently trading, projecting a 54% loss in value. The falling price, backed by increasing volume and breakdown below key daily EMAs (20, 50, 100, and 200), indicates strong sellers’ conviction.

With sustained selling, the coin price is poised for a 12% drop before testing the yearly support of $120. Historical data shows a reversal from this support has bolstered the rally ranging from 60-120%, indicating a high accumulation zone.

The Solana price will likely receive a surge in buying pressure at this support and shift the downward trend sideways for the coming weeks. If the support holds, the coin price could prepare for a bullish reversal with a potential breakdown past $175.