Solana (SOL), the native token of the Solana blockchain, is drawing attention from crypto enthusiasts due to its recent price drop and whale activity. The main catalyst was the statement that Binance is selling its entire Solana holdings.
Current Price Momentum
A post on X by Crypto Beast regarding Binance selling Solana sparked significant reaction in the crypto community, resulting in a price drop of more than 8% over the past 24 hours. Trading volume increased by 130% in the same period, indicating heightened participation from traders and investors. Substantial price movements usually occur with a spike in trading volume but do not necessarily signal bullish or bearish sentiment. In this situation, the sentiment is negative due to the whale sell-off and significant liquidations.
Solana Technical Analysis and Price Prediction
Aside from Binance's action, an impactful factor on SOL's bearish trend is the upcoming unlock of $1.7 billion worth of SOL tokens, scheduled for March 1, 2025. SOL has lost 45% of its value in the past 30 days and is nearing a crucial support level at $130, known for strong buying pressure and reversals. Technical analysis suggests a further potential decline to $75, another support level, if SOL fails to hold $120.
$200 Million SOL Outflow
Despite the bearish outlook, the analytics firm Coinglass reports that some investors and long-term holders are accumulating the asset, with nearly $200 million worth of SOL flowing out of exchanges in the past 48 hours. Such significant exchange outflows could indicate accumulation and potential upward pressure, though current market sentiment casts doubt on this expectation.
The current scenario surrounding Solana indicates high volatility and attention from major players and a wide range of investors. Upcoming events, such as the SOL unlock and fund outflows from exchanges, will be key factors influencing future price movements.
