Solana (SOL) price is under significant pressure after failing to hold the crucial support level of $125. A large whale dumped a substantial amount of SOL tokens worth over $7.6 million in USD Coin (USDC), contributing to increased selling pressure and declining network activity. This comes as Solana’s price has retreated from its recent highs, erasing most of its gains from March. The token is currently trading below the key support zone.
Analysts highlight a potential bearish trend with technical patterns indicating a breakdown around the $125 mark. Ali Martinez, an on-chain analyst, points out that if Solana fails to regain this crucial zone, it could plunge towards $105 as a deeper correction unfolds.
Adding fuel to the downward pressure, the large sell-off was triggered by several factors. A recent report from Lookonchain indicates a prominent whale unloaded 60,289 SOL tokens at an average price of $127 per token. The sell order added further weight to the already declining price. The token’s decline is being attributed to the slowing down in meme coin and DeFi activity.
Despite the bearish trend, Solana has hit a record high in active addresses recently, reaching over 11 million addresses. However, this recent growth coincides with a notable decrease in daily active addresses and daily transactions on a seven-day moving average according to Artemis. This slowdown is likely due to reduced demand for meme coins and DeFi activities.
The recent downturn adds to the overall uncertainty in the market, further impacted by broader economic factors such as Bitcoin and Ethereum’s price fluctuations and the Federal Reserve’s decision to keep interest rates unchanged. There’s also increasing anxiety about a potential escalation of trade tensions with Trump’s new tariffs on imported cars.
The future direction of Solana is contingent upon whether it can break above the $145 level, according to expert analysis. Failure to achieve this would likely confirm the bearish momentum and further push the price down. At press time, Solana trades at $131 – still below the key levels identified by traders.