Whale buys and stakes $223M in SOL, signaling long-term confidence.
Solana lost key $125 support, risking a drop to $105.
Macroeconomic risks and bearish patterns keep traders cautious on a potential rally.
A whale grabbed 1.77 million SOL tokens worth $223 million on Kraken. Instead of flipping for profit, the entire amount went into staking. This signals strong confidence, but will the market react? For now, SOL struggles despite this bullish action. A key support level collapsed, fueling more selling. Meanwhile, network data shows a mixed picture. Could a rally follow, or does more downside loom?
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Solana Battles Key Support as Sellers Dominate
Solana lost the $125 support, a crucial price level. Analyst Ali Martinez warned that a drop below this zone could trigger a deeper correction. The altcoin erased most March gains, slipping from $138 to $131 in hours. Trading volumes jumped 4% to $3.4 billion as selling pressure increased. A bearish wedge pattern raises concerns. Solana breached the lower trendline, signaling potential downside. Buyers must reclaim lost ground, or prices could sink toward $105.
Adding to the pressure, a whale unstaked 60,289 SOL and sold for $7.67 million in USDC. This sell-off happened as prices declined, fueling bearish sentiment. On-chain data shows conflicting signals. The total number of Solana addresses hit 11.12 million, setting a new record. However, Artemis data shows daily active addresses and transactions dropping. Meme coin hype and DeFi activity slowed, reducing demand.
Macroeconomic Risks Keep Traders on Edge
The broader market adds more uncertainty. Bitcoin and Ethereum dropped 2.1% and 6.5%, pulling altcoins lower. Global factors create more pressure. The Federal Reserve kept interest rates unchanged, but traders remain cautious. High rates suppress risk assets, delaying a market recovery.
Meanwhile, Donald Trump’s announcement of new tariffs on imported cars and parts fueled inflation concerns. These policies could shake global trade, increasing volatility. Cryptocurrencies often react sharply to economic shifts. Martinez identified $145 as a key level for Solana’s recovery. A breakout above this resistance would boost bullish momentum.
Without strong buying, sellers may keep control. At press time, Solana trades at $131, hovering near critical support. Buyers need to hold the $125 level to restore confidence. The whale’s massive stake shows conviction, but price action must confirm strength. Traders watch closely, waiting for a decisive move that sets the next trend. Read MoreNews, Altcoin News, Altcoin, Crypto market, cryptocurrency, Solana (SOL)
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