A large Solana (SOL) whale moved 494,153 SOL, valued at approximately $72 million, to Coinbase Institutional, fueling fears of an impending sell-off. This large transfer to an exchange, commonly known as an “exchange inflow,” typically signals that the investor may intend to sell the assets, leading to increased supply in the market. Such actions often lead to downward pressure on the price, especially if the market cannot absorb the additional selling volume.

$72 Million Transfer to Coinbase Signals Potential Selling Pressure

According to Whale Alert, a well-known tracker for significant blockchain transactions, the 494,153 SOL transfer took place on March 4, 2025. With the current market price of Solana around $145, this transfer has brought a considerable amount of supply onto Coinbase, where the whale may be preparing to sell the coins. This kind of move can signal a bearish shift, as large inflows often lead to selling pressure, especially if there is insufficient demand to absorb the increase in supply.

The influx of SOL into exchanges like Coinbase also suggests that the whale may be looking to take profits or reduce their exposure, which could have a cascading effect on the broader market. If retail traders follow suit and begin to sell off their positions in response to the whale’s actions, Solana’s price could face significant downward pressure.

Negative Sentiment Adds to the Bearish Outlook

In addition to the large transaction, Solana’s market sentiment is also turning negative, further compounding the risks of a sell-off. At the time of writing, the coin’s weighted sentiment is sitting at -0.51, according to Santiment. Weighted sentiment analyzes social media and online discussions, measuring the tone of conversations around a particular asset. A negative sentiment score indicates that the majority of discussions are pessimistic, with more negative comments than positive ones.

When sentiment is negative, it can discourage new demand from entering the market, as traders may be more likely to sell rather than buy, fearing further losses. This type of sentiment tends to amplify downward price movements, as more traders react to the prevailing bearish outlook.

Solana’s Price Outlook: Could It Drop to $138?

As of now, Solana is trading at $145.84. If the selling pressure from both the whale’s move and the broader market sentiment continues, SOL could potentially drop to $138.84, a key support level. A decline to this level would represent a significant dip from its current price, and further losses could follow if the sell-off intensifies.

However, not all signs are bearish for Solana. On the daily chart, technical indicators like the Parabolic SAR (Stop and Reverse) suggest that there is still bullish momentum in the market. The dots on the Parabolic SAR indicator are positioned below the price, which typically signals a bullish trend. This indicates that there is still buying interest at these levels, and SOL could experience a rebound if this support holds.

A Potential Rally to $160?

Should the positive technical indicators prevail and buyers step in to defend key support levels, Solana could see a rally toward $160.34. This would mark a recovery from the recent dip and could potentially restore some market confidence.

Conclusion: Will Solana Continue to Struggle?

The transfer of 494,153 SOL to Coinbase by a major whale has raised concerns about the potential for a sell-off, especially as negative sentiment begins to dominate the market. If retail traders follow the lead of large investors and start selling, Solana’s price could drop further, with the $138.84 support level in sight. However, the presence of bullish technical indicators suggests that there is still a possibility for a short-term rally to $160, depending on how the market responds.