Solana Whales Dumping as Network Surges – Is This a Buying Opportunity?

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MARKETS TREND

Solana (SOL) has encountered notable selling pressure, dropping below $170 before recovering to $176, even as the network demonstrates remarkable technological adoption and usage metrics.

Solana Whales Dumping as Network Surges - Is This a Buying Opportunity?
Solana price analysis

This decline comes amid broader cryptocurrency market uncertainty, with Bitcoin retreating to $90,600 and Ethereum falling to $3,100.

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Solana Network Growth vs. Price Action: Conflicting Signals

Solana’s network data show a convincing picture of rising adoption despite a price weakness. Based on Nansen Analytics, Solana’s gas fees have shockingly exceeded Ethereum’s during the previous week, producing $32.2 million instead of Ethereum’s $25.5 million. With about 718.65 million transactions handled by the network, 87 times more than Ethereum, it clearly boasts exceptional scalability.

Strong Institutional Interest in SOL

According to JPMorgan’s most recent research, Solana investment products appeal greatly to institutions. Drawing on past adoption rates of Bitcoin and Ethereum investment vehicles, the bank estimates possible inflows of $3–6 billion into Solana ETPs. Solana-tied ETPs now under management have assets worth about $1.6 billion.

SOL/USD Technical Analysis and Price Outlook

SOL/USD

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The technical picture shows increasing bearish pressure:

  • SOL/USD is trading below its 20-day moving average
  • Daily trading volume has surged to 4.68 million
  • The Choppiness Index reading of 43.09 indicates moderate directional movement
  • Key support levels exist at $172.57 (lower Bollinger Band) and $170

Recent whale activity has added to the selling pressure, with one large holder transferring 122,620 SOL ($21.75 million) to Kraken exchange. However, the RSI approaching oversold territory suggests potential price stabilization.

Solana Price Prediction

While immediate pressure remains bearish, multiple technical and fundamental factors suggest potential stabilization:

  • Critical support at $175 must hold to maintain bullish structure
  • A break above $193 could trigger a 7% rally toward $207
  • Failure to hold $170 could see prices test $150

Traders should monitor the $175 support level and daily volume patterns for signs of trend reversal or continuation. The widening Bollinger Bands indicate increased volatility ahead, suggesting careful position sizing and risk management are crucial in the current market environment.

Read also: Solana Price Prediction 2025: How High Can Ethereum Killer SOL Price Go?

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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