As the third quarter comes to an end, Solana (SOL) is under intense scrutiny. The recent market downturn has hit major cryptocurrencies like Bitcoin and Ethereum, and Solana hasn’t been spared, with its price dropping to $130.
This decline is further intensified by the actions of a major whale or institution that has been consistently offloading large amounts of SOL throughout the year, exerting more selling pressure on the Solana.
Whale’s Massive SOL Sell-Off
According to Lookonchain, a blockchain analytics platform, this entity has sold a total of 695,000 SOL, worth about $99.5 million, since the beginning of the year. The whale or institution has been unloading SOL at a consistent rate, selling an average of 19,306 SOL each week, amounting to around $2.76 million in weekly sales.
Over the year, these sales have accumulated to nearly $100 million worth of SOL, indicating a sustained strategy rather than a one-off liquidation. This selling pattern has contributed to the ongoing pressure on the Solana market, with many market watchers speculating about the reasons behind this large-scale sell-off.
Whale’s Current SOL Holdings
Despite the large volume of sales, the whale or institution still holds a substantial amount of SOL, with 1.88 million SOL currently staked, valued at about $255.89 million. This suggests that, even though they are offloading some of their holdings, they maintain a strong presence in the Solana network.
However, this ongoing sale of SOL could impact the market significantly. Such large and consistent selling might put downward pressure on Solana’s price, especially if other big holders decide to follow this trend.
Solana Price Analysis
Solana is facing increasing bearish pressure, as indicated by the MACD turning red. If this selling pressure continues, especially before possible Federal rate cuts, it could make it hard for SOL to increase in price.
Adding to the market’s turbulence, open interest in Solana futures has surged by 20% since last week, pointing to aggressive short-selling by traders.
As of now, Solana is currently struggling to stay above the $135 support level, which has been important for bouncing back in the past. If it drops below this point, it could fall further to around $110, with a chance of dropping even more into the $98-$104 range if selling pressure grows.
However, if Bitcoin and the broader market improve in Q4, Solana might avoid falling below $100.
