Solana whale exits at a $17.6mln loss – What’s next for SOL?

Solana has struggled to maintain an upward momentum. The altcoin has remained below $100 for an extended period and has more recently stabilized around $85.  

In fact, at press time, SOL traded at $84, down 3.4% on the weekly charts. This continued price weakness has prompted most market players to exit and withdraw capital from the asset. 

As a result, the altcoin fell to 7th position on CoinMarketCap, with USDC now displacing it, reflecting massive capital outflows. 

The continued market losses have prompted long-term holders, especially large entities, to rethink their commitment. 

In fact, whales have largely abandoned the market and are sitting on the sidelines. Spot Average Order Size data from CryptoQuant showed whale orders have disappeared from the market. 

This metric showed whale orders appeared only once in the past seven days, indicating whales are increasingly bearish. 

Solana whale faces a $17.62 million loss

Solana [SOL] investors, especially whales, have capitulated and started selling at a loss amid extended weakness, according to Onchain Lens. A whale returned after 11 months of dormancy and deposited 211,694 SOL worth $17.77 million into Binance.

The whale purchased these tokens when Solana was trading around  $172 and spent $35.4 million on the trade.

Since then, the altcoin has recorded massive losses, and the transfer at the current market value leaves the whale facing a $17.62 million loss.

Often, when large holders exit positions at a loss after a long period, it shows a lack of confidence in the market. In most cases, increased whale market exit has preceded further market weakness. 

Furthermore, exchange activities have echoed this increased sell-side activity. Looking at the Spot inflows, sellers have largely dominated the market over the past week. 

At press time, for instance, the altcoin recorded a spot inflow of $135.1 million, while inflows dipped to $125 million. 

As a result, the altcoin’s Spot Netflow rose 434% to $10.14 million, a clear sign of aggressive spot selling. Usually, when sell-side activity increases, while whale demand dries up, the market trembles and makes more losses. 

What’s next for SOL?

With Solana under intense bearish pressure, the altcoin’s downside risk has elevated. In fact, the altcoin currently sits below the 20-, 50-, 100-, and 200-day EMAs, indicating strong downward momentum.

Thus, sellers have total control of the market. As a result, the Relative Strength Index (RSI) has struggled to hold above 50, currently sitting at 46.

At these levels, RSI further confirms the prevailing market conditions. Combined, these two indicators signal higher chances of continued downside.

Thus, if sellers, especially whales, continue to dump, SOL could lose the $80 support again. However, if the altcoin holds $85, it will likely continue to move sideways with $89 as resistance.

Final Summary

• SOL remained below $100 and stabilized near $85.
• Solana whale’s exit locked in a $17.62 million loss after holding for nearly a year.