Solana’s [SOL] price action has caught the attention of traders and investors as whale activity intensifies, leading to speculation about a potential market shift. A large transaction recently saw a Solana whale move 71,448 SOL—valued at around $8.54 million—from staking to Binance. This has raised renewed concerns regarding possible sell pressure from major holders, as many whales continue to offload their positions.

At the time of writing, SOL was trading at $107.32, reflecting a modest 1.08% drop over the past 24 hours. While this decline is relatively small, the large-scale selling activity over the last 24 hours—more than 149,000 SOL sold between $102 and $108—has added to the unease in the market.

Despite these sales, the same whale still holds a significant portion of SOL, with approximately 568,000 SOL—worth about $68 million—remaining staked. This could indicate that the whale is merely reallocating assets rather than exiting the market entirely, but the moves have certainly reignited concerns about a short-term correction for Solana.

Will $103 Support Hold?

Solana has been testing a crucial support level around $103, a price zone that has consistently served as a demand area during past corrections. Following recent price dips, SOL managed to bounce off this support level, which has provided some short-term stability.

Traders are now eyeing key resistance levels at $120.43 and $143.84. A breakout above these levels could inject new momentum into the market, potentially signaling a recovery. However, if SOL fails to maintain its position above the $103 support in the coming days, the price could face a more significant downturn. A failure to hold this level could lead to further declines, possibly bringing the price back into the double-digit range.

Cautious Sentiment and Low Social Buzz

Despite Solana’s brief price recovery, market sentiment remains cautious. The total Weighted Sentiment for SOL currently stands at -0.178, reflecting the prevailing bearish outlook. The large sell-offs from whales have heightened uncertainty, and traders are wary of SOL’s direction, particularly given the fragility of sentiment.

Social interest in Solana has also cooled significantly, with social volume dropping to 217 mentions and social dominance falling to 4.81%. This decline indicates that retail traders are hesitant, waiting for clearer signals of strength before re-engaging with the asset. However, social sentiment can shift quickly, and a strong rally above the $120 resistance level could reignite excitement and turn the market’s attention back to Solana.

Technical Indicators Suggest Potential Momentum

Despite the cautious mood in the market, some technical indicators hint at the possibility of a short-term rebound. Solana’s Relative Strength Index (RSI) is hovering around 35, approaching oversold territory, which could signal an upcoming price recovery. Additionally, the MACD is nearing a crossover point, with the signal line narrowing. If these indicators confirm a shift in momentum, a short-term rally could be on the horizon, provided that trading volume supports upward movement.

Is It a Correction or Just a Reallocation?

At this stage, the movements in Solana’s on-chain behavior seem more like a strategic reshuffle by whales rather than a complete exit. Given the current technical setup, it’s possible that Solana could experience a short-term bounce, especially if the price holds above the $103 support level. However, the bearish sentiment and the cooling social buzz make it difficult to predict a sustained rally in the immediate future.

Traders should remain alert and watch for a decisive move above resistance levels, particularly the $120 mark, which could help shift the market’s tone toward bullishness. Until then, the risks remain elevated, and volatility is likely to continue.