Solana Price Drops As Whales Withdraw 139,000 SOL

Solana price has experienced a notable decline as whales have begun to unstake substantial amounts of SOL tokens. This has contributed to increased market volatility and bearish trends.

Solana price has experienced a notable decline as key metrics, such as price and technical indicators, suggest a bearish continuation. Meanwhile, on-chain data reveals that a whale has unstaked a substantial amount of 139,000 SOL tokens.

Solana Price Drops As Whales Withdraw 139,000 SOL

On-chain data tracker Lookonchain highlighted the movement of 139,000 SOL tokens, withdrawn by a whale, raising concerns about the asset's stability. This massive withdrawal coincides with a sharp decline in Solana price from recent highs around $161 to current levels near $137.

This significant withdrawal also corresponds with a pattern observed historically, where large-scale unstakings tend to align with price drops.

As large holders adjust their portfolios in response to unfavourable market conditions, there have been substantial withdrawals from various staking platforms. These movements are closely monitored to assess the selling pressure and potential impacts on the cryptocurrency market.

Solana price has struggled to maintain higher levels of support following the whale's withdrawal. As prices dropped, Solana breached a key technical support line that acted as a crucial level during previous bullish phases.

Moreover, technical indicators suggest an increase in selling pressure and a possible continuation of the current bearish trend. For instance, analyzing the Moving Average Convergence Divergence (MACD) on the daily Solana price chart, we can observe that the MACD line is below the signal line, indicating bearish momentum.

The histogram, which visualizes the gap between the MACD line and the signal line, shows increasing bearish bars. This suggests that the selling pressure is intensifying. This bearish trend is a signal that traders may be increasingly pessimistic about Solana short-term price prospects

The cryptocurrency market is also entering a period of heightened volatility as it approaches the end of the quarter, which traditionally brings more volatile price movements. This environment may exacerbate the impact of large whale withdrawals, potentially leading to further declines.

Solana price could find support at $130, corresponding with the Fibonacci retracement level of 0.236. This level might act as a crucial point for price stabilization following recent drops.

As whales unstake and potentially sell their Solana holdings, the staking ratio, crucial for the network's security and transaction validation process, could be affected. A lower staking ratio might deter new investors concerned about the network's long-term viability.

However, Solana remains a major player in the blockchain space, with ongoing innovations and project launches that could stabilize the price in the future.

On the flip side, a recent analysis by CoinGape suggests that while immediate impacts seem bearish, there could be potential for a longer-term recovery. According to the analysis, as liquid staking listings increase, SOL price might target $150.

At the time of writing, SOL price is trading at $137.19, marking a 1.84% decline over the last 24 hours.

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