- Solana could drop by 11% to reach the $156 level if it falls below the $175 mark.
- Traders over-leveraged at $182.1 on the lower side and $193.2 on the upper side.
Solana [SOL], the world’s fifth-largest cryptocurrency by market capitalization, appears to weaken day by day due to ongoing market uncertainty.
Whale dumps $45.7 million worth of SOL
Amid this market decline, the blockchain-based transaction tracker Whale Alert posted on X (formerly Twitter) that a crypto whale had dumped a significant 246,064 SOL, worth $45.76 million, to Binance.
As of now, the whale’s wallet address remains unknown, raising concerns among investors about a potential sell-off.
Additionally, the significant dump on Binance occurred as the SOL price reached a crucial horizontal support level of $176 and the 200-day Exponential Moving Average (EMA).
Solana’s technical analysis and key levels
This crucial support level is a make-or-break situation for SOL. Expert technical analysis shows that if the altcoin breaches the 200 EMA and closes a daily candle below $174.5, there is a strong possibility of an 11% drop.
It could potentially reach the $156 level in the future.
Source: TradingView
Conversely, if SOL manages to hold above the 200 EMA, it could once again exhibit upside momentum toward the $220 mark.
On-chain metrics mixed sentiment
Analyzing the market sentiment and the technical outlook for SOL, investors and long-term holders appear to be dumping their holdings onto exchanges, as reported by the on-chain analytics firm Coinglass.
Data from Spot Inflow/Outflow metrics reveal that exchanges have witnessed an outflow of over $61 million worth of SOL in the past 24 hours.
The outflow in such a situation indicates a potential sell-off signal and has the potential to create selling pressure, leading to a further price decline in the altcoin.
Major liquidation areas
As of now, the major liquidation levels are at $182.1 on the lower side and $193.2 on the upper side, with intraday traders, over-leveraged at these levels, according to Coinglass data.
Source: Coinglass
If the market sentiment remains unchanged and the price reaches the $182.1 level, nearly $111.61 million worth of long positions will be liquidated.
Conversely, if the sentiment shifts and the price rises to the $193.2 level, approximately $14.19 million worth of short positions will be liquidated.
When combining these on-chain metrics, it appears that traders holding long positions are potentially stronger than short sellers.
Read Solana’s [SOL] Price Prediction 2025–2026
At press time, SOL was trading near $192 and recorded a modest price surge of 1.10% in the past 24 hours.
However, during the same period, its trading volume dropped by 5.5%, indicating lower participation from traders and investors compared to the previous day.
