Solana (SOL), the native cryptocurrency of the Solana blockchain, is facing intense downward pressure after significant news stirred the market. On February 25, 2025, a post by Crypto Beast, a blockchain-based transaction tracker, revealed that Binance was reportedly selling off its entire holdings of Solana. This news caused a rapid drop of over 8% in SOL’s price within just 24 hours, fueling widespread panic and drawing significant attention from both traders and investors.

At the time of writing, Solana is trading at approximately $143, reflecting a considerable decline. The 130% spike in trading volume during this period indicates heightened market activity, but it’s not necessarily a bullish sign. Such volume surges typically happen during times of intense price movement, whether the asset is breaking out or breaking down. Unfortunately for SOL holders, this uptick in trading has occurred during a bearish phase, indicating that market sentiment is leaning negative.

Binance’s Solana Sell-Off

The news of Binance liquidating its Solana holdings has significantly impacted SOL’s price. Binance, one of the world’s largest cryptocurrency exchanges, has a major influence on market movements. When large players like Binance decide to sell off holdings, it often triggers a domino effect, where other investors follow suit. This results in increased downward pressure on the asset, as seen with SOL’s recent price drop.

Adding fuel to the fire, the market has already been under pressure from another significant event: the upcoming unlocking of $1.7 billion worth of SOL tokens, scheduled for March 1, 2025. This event could introduce additional selling pressure, especially if investors decide to cash out their newly unlocked tokens. Given the current market sentiment, many are bracing for further price declines as these new tokens enter circulation.

Solana’s Technical Analysis and Potential Price Drop

Technical analysis paints a concerning picture for Solana’s price trajectory. After a sharp 45% drop in value over the past 30 days, SOL is now approaching a crucial support level at $130. This level has historically been a point where buying pressure has emerged, but the recent negative developments put the strength of this support at risk.

If SOL fails to hold the $130 support and closes below this level, it could trigger further losses. In such a scenario, analysts predict that Solana could drop by as much as 35%, potentially testing a lower support zone around $75. The loss of this key support would mark a severe blow to SOL’s price and could lead to a broader market downturn, particularly for altcoins like Solana.

Whale Activity and Accumulation

Despite the overall bearish sentiment, there are signs of accumulation in the market. On-chain analytics from Coinglass show a substantial outflow of nearly $200 million worth of SOL from exchanges in the past 48 hours. This suggests that long-term holders may be accumulating SOL, possibly in anticipation of a market recovery. However, given the current negative sentiment, it remains uncertain whether this accumulation will result in any immediate upward momentum.

In contrast, the market is currently dominated by over-leveraged positions, with a significant number of traders betting on the short side. These traders are betting that the price of SOL will continue to fall, which further exacerbates the downward pressure on the token. As these positions get liquidated, it could cause a cascade effect, leading to even sharper price drops.

What’s Next for Solana?

Solana’s current market environment is one of uncertainty and risk. With Binance selling off its holdings, the upcoming token unlock event, and increasing liquidations, SOL faces significant challenges in maintaining its price above crucial support levels. While there are some signs of accumulation from long-term holders, the overall market sentiment remains bearish.

Traders and investors will need to closely monitor the $130 support level. If Solana fails to hold this key level, it could trigger a further sell-off, pushing the price toward the next support zone around $75. Conversely, if the token finds buying support at $130, it may be able to stabilize and prevent further declines. However, with the market sentiment still heavily negative, caution is advised for anyone considering an investment in Solana at this time.