Solana (SOL) Price Reverts Below $85K as Whales and Institutions Unstake Millions of Tokens

On March 4th, Tuesday, the crypto market witnessed continued selling pressure as escalating trade tensions between the United States and China fueled market uncertainty.

The crypto market continues to witness selling pressure as escalating trade tensions between the United States and China fuel market uncertainty. This has pushed the Bitcoin price back below $85,000, accelerating the correction momentum in the majority of major altcoins like SOL.

The falling Solana price is now nearing a crucial support test, putting it at risk of a $100 breakdown.

Key Highlights

Whale and Institutional Unstaking Triggers Selling Pressure on SOL

SOL, the native cryptocurrency of the Solana ecosystem, has seen a notable correction from $179 to $137—a 25% decrease—in the last 2 days. This downfall can be attributed to a broader market downturn and substantial unstaking of SOL coins from whales/institutions.

According to Lookonchain data, a crypto whale has unstaked 79,530 SOL, worth approximately $10.86 million. This move signals potential selling pressure or repositioning in the market. The whale originally withdrew 200,000 SOL (value: $8.6 million) from the Binance exchange on November 8, 2023, and staked it when the asset traded at around $43.

Later, on November 6th, 2024, the SOL holder unstaked and deposited 120K $SOL (value: $15.2 million) to Binance. Despite this recent transaction, the whale still holds 98,727 SOL ($13.53 million), indicating a potential for further activity. The total profit realized by the whale from these transactions amounts to more than $27 million.

Meanwhile, institutional activity has also come into focus as FTX/Alameda unstaked a massive 3,030,000 SOL ($412.39 million). According to Solid Intel, part of this allocation—24,799 SOL ($3.37 million)—was deposited into Binance eight hours prior to the report.

These whale and institutional movements often add selling pressure to the market and contribute to bearish market sentiment.

Solana Price Nearing Major Breakdown

As of press time, the Solana price is at $136, with an intraday loss of 4%. The falling price is just 11% short of reaching the multi-year support of $120. Historical data shows that a reversal from this support has resulted in a 60-120% rally in the SOL price, highlighting a strong accumulation zone.

Therefore, the aforementioned level is crucial for buyers to defend, as a bearish breakdown could trigger significant liquidation. A daily candle closing below $120 could accelerate the correction to $78 support, registering a potential loss of 35%.

If the sellers maintain pressure and close the candle below the $120 floor by mid-March, the SOL price could fall below the $100 mark before the month ends.