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Solana is once again under heavy pressure as major holders intensify selling and build short positions, placing the token’s critical demand zone in the spotlight. After weeks of volatile price action, the market has shifted toward bearish positioning, signaling a shift in sentiment among large players that previously supported Solana during market rebounds.
Data across on-chain monitoring platforms suggests that whale-controlled wallets are now betting on further downside rather than accumulation. With algorithmic traders and retail investors taking cues from whale behavior, the price action has turned into a test of whether Solana’s buyers can defend familiar support levels or whether selling strength will dominate the next phase.
Large Wallets Shift Bearish as Major Holder Exits $4.71 Million Position
The latest wave of selling began when whale wallet DYzF92 moved 33,366 SOL — worth approximately $4.71 million — into an exchange to close a position at a loss of roughly $230,000. According to Lookonchain, the wallet had accumulated the tokens about seven months earlier, making the exit a clear sign of sentiment reversal rather than routine profit-taking.
The move carries symbolic significance as whales typically act as stabilizing forces during downturns. Instead, the transaction marks one of the largest bearish moves from a whale in recent months and adds weight to broader selling across similar-sized wallets.
AMBCrypto’s analysis indicates that this behavior is not isolated. Other wallets have been seen adding substantial short exposure, reinforcing expectations of a near-term drop instead of a bounce.
On-Chain Metrics Validate Rising Selling Pressure
CryptoQuant data shows a notable rise in the average spot order size around Solana’s latest trading zone. Historically, sharp increases in average order size appear when institutional or major private wallets intervene — and in this case, those orders are skewed toward selling.
The positioning distribution metrics also reveal that the majority of activity comes from traders establishing or increasing short exposure. This reinforces the bearish thesis: major holders are acting on the assumption that Solana may continue trending downward before forming a new base.
The broader derivatives market has followed in the same direction. Coinglass data shows Solana’s long/short ratio dropping below 1, signaling a clear tilt toward short positions and reflecting broader expectations of declining prices. A long/short ratio below 1 normally corresponds with caution, risk-off sentiment and reduced conviction in short-term upside.
Critical Demand Zone Becomes Solana’s Last Line of Defense
Price action on the daily chart centers on Solana’s long-defended demand zone near the $140 region. Historically, this zone has triggered multiple relief rallies and served as an area where buyers step in reliably.
The question now is whether that structure can once again absorb pressure from coordinated whale selling. If the demand zone holds, Solana could maintain market structure and potentially force short sellers to unwind some of their positions — a setup that could lead to a temporary short squeeze.
However, if the zone breaks decisively, momentum could shift sharply downward. With whales leaning heavily on the sell side, failure of support could accelerate liquidations and pressure Solana toward lower price levels before stability returns.
ETF Flow Trends Add Another Layer of Uncertainty
Even though Solana ETFs recorded positive inflows over the past 24 hours, the broader trend has weakened for days. Institutional inflows have become sporadic at a moment when the market needs consistent demand to counterbalance aggressive selling.
Spot ETF demand has played a major role in supporting Solana during recent periods of volatility. Without strong institutional appetite, the short-term recovery setup loses one of its most important components.
Long-term advocates of the Solana ecosystem argue that current weakness does not reflect technological fundamentals or the project’s role within decentralized finance, gaming and network infrastructure. Still, markets often respond more to positioning than fundamentals in the short term, and investor caution continues to dominate sentiment.
Could Solana Still Surprise the Bears?
Despite mounting bearish indicators, Solana has a history of unexpected rebounds when traders become overly confident in downside continuation. Past cycles have shown that whales shorting the market does not always guarantee a sustained trend.
If buyers defend the demand zone strongly enough to trigger liquidation of leveraged short positions, Solana could see quick upward volatility. Such events often happen when the market is clearly positioned one way and a breakout forces traders to unwind.
For this scenario to unfold, traders will be watching:
• Price action at the $140 demand zone • Funding rates in the derivatives market • A shift in long/short ratio toward neutrality • A recovery in ETF inflows
If these signals align, a short-term relief bounce becomes more likely.
Outlook: Battle Between Buyers and Whales Continues
The next phase for Solana depends on whether the demand zone maintains its historical resilience. If it does, bearish pressure could fade and confidence among buyers may rebuild. If it breaks, selling momentum could grow rapidly as shorts expand positions and stop-loss triggers accelerate downside.
For now, both traders and long-term holders are closely monitoring whale behavior to determine whether recent selling is a temporary shake-out or the start of a deeper retracement. Whales have the upper hand at the moment, but the market has not yet eliminated the possibility of an abrupt reaction from buyers.
Solana’s next move will likely be decided not by retail participation, but by who takes control of the demand zone first — large sellers pushing downward, or bulls absorbing supply to protect key structure.
