A massive sell-off by Solana whales has shaken the market, with large holders dumping over $46 million worth of SOL tokens in just one day. This sudden wave of activity has raised concerns of a deeper correction, especially as Solana’s price struggles to maintain key support levels.

Whale Activity Sends Shockwaves Through Solana Market

On April 5, 2025, multiple whale addresses initiated substantial sales of Solana’s native token, SOL, contributing to a significant price pullback. According to on-chain data, the largest sale came from wallet address HUJBzd, which unloaded a massive 258,646 SOL tokens, worth approximately $30.3 million.

Other major addresses followed suit, with BnwZvG selling 80,000 SOL for $9.47 million, and 8rWuQ5 and 2UhUo1 offloading 30,000 and 25,501 SOL, respectively. In total, these transactions added up to $46.3 million worth of SOL being dumped in a very short window, triggering fears of a more significant price decline.

Potential for Further Decline as SOL Tests Key Support

The sudden sell-off has raised questions about the future direction of Solana’s price. The fact that these large sales occurred after SOL was unstaked suggests a lack of long-term confidence from these whale investors. When whales, who typically hold substantial amounts of an asset, begin to exit, it often signals a bearish sentiment in the market.

At the time of writing, SOL was struggling to reclaim the $120 resistance level, which had previously acted as a barrier to price gains. With a fresh wave of sell-offs adding more downward pressure, Solana now finds itself testing a critical support zone near $100. If the support level fails to hold, there’s a real possibility that SOL could dip further toward $98, which is a key psychological threshold for traders.

Broader Market Sentiment Adds to the Bearish Pressure

The broader market is also contributing to the uncertainty surrounding Solana. With Bitcoin and other major cryptocurrencies showing continued volatility, altcoins like SOL are closely following their movements. As market sentiment turns cautious amid broader fears, both retail and institutional investors may choose to stay on the sidelines. This reduces the chances of a swift recovery for SOL in the short term, unless a positive catalyst emerges, such as new ecosystem developments or improving macroeconomic trends.

However, it’s important to note that whale activity doesn’t always signal doom for an asset. In past market cycles, large sell-offs by whales have sometimes been followed by accumulation phases, where whales re-enter the market to pick up assets at lower prices. The key will be watching whether these whales re-enter the market or if new investors step in to absorb the selling pressure.

Solana at a Key Demand Zone: Will it Hold?

Technically, Solana’s price is currently hovering near a crucial demand zone, which has shown strength in the past. This zone, located around the $110 level, has previously seen multiple rejections and has acted as strong support. If history repeats itself, the demand zone could reject prices to the upside, potentially fueling a short-term reversal.

However, if the buying volume remains weak or fails to pick up momentum, Solana could dip below the $100 level, which is a key psychological price point for traders. Watching volume trends over the next few days will be critical to understanding whether SOL can recover or if further downside is on the horizon.

Conclusion

Solana’s recent sell-off by whales has put the cryptocurrency in a precarious position. While the strong whale activity has raised concerns of further price decline, the asset’s current positioning near a key demand zone leaves room for a potential reversal. Traders and investors will need to monitor Solana’s price action closely, particularly how it behaves around the $100 support zone, to determine whether the current bearish sentiment will continue or if a recovery is on the horizon.