Solana (SOL) Faces 4% Price Decline Amid Whale Activity and Upcoming Unlock Event
Solana (SOL) has recently faced a 4% decline in price as whales have offloaded a significant $200 million worth of tokens ahead of the network’s largest unlock event since 2023. The unlock, set for April 4, 2025, has raised concerns about the immediate future of Solana’s price, as the market grapples with broader economic factors, including rising fears from the U.S. tariff measures.
Despite this short-term setback, Solana’s broader market trends suggest a potential recovery, but significant volatility is expected in the lead-up to and after the unlock event.
On-Chain Whale Activity and Market Impact
In the past 24 hours, Solana has seen substantial whale activity, with multiple large stakeholders unstaking their tokens and selling them in the open market. On-chain analysis from Lookonchain indicates that this mass exodus of tokens coincides with the looming unlock event. Whales have been diversifying into more stable assets, including stablecoins and gold, in anticipation of potential market volatility.
This behavior reflects a cautious sentiment in the broader crypto space, where fears of a market crash—fueled in part by recent moves in the U.S. tariff policy—are influencing investor decisions. However, this large-scale movement of tokens raises concerns over the potential for further price drops in the short term, especially as these whales begin to liquidate their holdings.
Solana’s Key Support Levels and Price Action
Solana’s price has been trading within a rising trend since late 2023, characterized by higher highs and higher lows. This upward trajectory has been bolstered by a robust logarithmic trendline acting as support over the past year. However, the current drop has brought Solana’s price back into the lower $115 range, where it is retesting crucial support levels.
Solana is facing a critical test of its support around the $124 mark, which has been an important level for both support and resistance. In the weekly timeframe, the SOL/USD pair has repeatedly bounced off this rising trendline, offering some hope that the price could stabilize once again.
Despite the recent dip, Solana remains within its longer-term uptrend, which could still hold if the network manages to maintain its support. This suggests that while the short-term price may be under pressure, the potential for a future rally remains intact, as long as key support levels hold.
What’s Next for Solana Price?
Looking ahead, Solana’s price will likely continue to face turbulence as the impact of the unlock event plays out. The large amounts of Solana being unlocked and sold may weigh on the price in the immediate term, but it could also pave the way for a potential recovery if market conditions stabilize. Solana’s technical indicators, including its trendlines and support levels, suggest that a rebound could occur if the token remains above critical support zones.
The upcoming weeks will be crucial for Solana, as the market digests the effects of the unlock event and whether the broader crypto market can shake off fears tied to U.S. tariff policies. If Solana manages to reclaim the $124 level and hold above it, the price could stabilize and even rise in the longer term.
In conclusion, while Solana faces some challenges in the short term, its technical setup and the overall bullish trend from late 2023 suggest that it may rebound once the current market volatility settles. Investors will need to watch the key support levels and whale activity closely to gauge the next move for SOL.
