After a long stretch of market volatility, one of Solana’s largest holders has made a bold move—unstaking over $17 million worth of SOL after four years. The move has fueled widespread discussion within the crypto community, especially as Solana’s price struggles to regain lost ground. But should investors be concerned, or is this just another shakeout before a recovery?

Over the last two weeks, Solana has been caught in a descending channel, pulling back from a local high of $187 to a recent low of $141. The persistent downtrend has tested investor patience, particularly among long-term holders who had locked their tokens into staking contracts. One such whale, a long-term believer in Solana’s potential, appears to have grown wary of the market’s sluggish performance.

According to data from Onchain Lens, this whale recently unstaked 25,008 SOL—valued at around $3.7 million—and moved nearly all of it to Binance. This wasn’t a one-off action. Over the past two months, the same wallet has unstaked a total of 125,045 SOL, amounting to $17.64 million, ending a four-year-long staking period. The scale and timing of these moves suggest a potential shift in sentiment, especially as they come during a broader market cooldown.

Even though this whale has moved a substantial portion of their holdings, it’s worth noting that they still have more than 1.17 million SOL—valued at over $174 million—locked in staking. While the recent unstakes raise concerns, the bulk of their position remains untouched, which could imply they haven’t fully lost faith in the project.

Nonetheless, large unstaking events like this tend to send mixed signals to the market. For many traders and analysts, it introduces a risk factor. It often reflects growing dissatisfaction among early adopters or long-term investors who may no longer believe in a near-term price rally. This unease can influence other large holders, especially if Solana’s price continues to show signs of weakness.

CoinGlass data has also highlighted a notable shift in exchange activity. After more than two weeks of negative exchange netflows—where more SOL was being withdrawn than deposited—netflows have now flipped positive. This means more SOL is entering exchanges than leaving, typically a warning sign that increased sell pressure may be around the corner.

However, the market’s response has been somewhat surprising. Instead of succumbing to the selling pressure, Solana’s price saw a modest bounce. Following the dip to $141, the asset has posted two consecutive days of gains, now trading near $152, up 3.16% in the past 24 hours. This suggests that while one major holder is offloading, demand in the broader market remains strong enough to absorb the excess supply.

One reason for this resilience lies in the behavior of smaller investors. Coinalyze data shows that spot market buyers accumulated approximately 479,000 SOL recently, with a positive delta of 113,000 tokens. This indicates strong buying interest that is currently outpacing selling pressure, helping stabilize prices despite the whale’s exit.

On the technical side, there are signs that Solana might be gearing up for a rebound. The Stochastic RSI, a popular momentum indicator, has shown a bullish crossover—an early sign that momentum could be shifting in favor of buyers. If this trend holds, SOL could be on track to reclaim the $165 level, a key resistance point on the charts.

Still, the path forward isn’t entirely risk-free. If other whales decide to follow suit and begin liquidating portions of their holdings, the market could face renewed downward pressure. In that case, the $140 support level becomes critical. A break below this threshold could accelerate losses and trigger a broader sell-off.

In the short term, Solana’s outlook remains delicately balanced between cautious optimism and the possibility of further drawdowns. The recent whale activity has undeniably rattled nerves, but strong spot buying interest and encouraging technical indicators suggest that the bulls may not be ready to give up just yet.

For now, investors should watch key price levels and monitor whale activity closely. While a single whale’s action doesn’t determine the fate of the market, it can serve as a useful indicator of broader sentiment. Whether Solana can turn this into a springboard for recovery or faces another leg down will depend on the strength of its support and the willingness of buyers to keep absorbing pressure.