Solana Price Prediction: Major Whale Sells $17M as SOL Targets $120 Support

Key Market Highlights

Solana price faces significant downward pressure as bearish momentum intensifies across the cryptocurrency market. The SOL token currently trades at $163, representing a 2.86% decline over the past 24 hours and a substantial 12% drop across the previous seven days.

Market analysis reveals three critical factors driving Solana's current price action: whale selling activity totaling $17 million, record-breaking long position liquidations exceeding $57 million, and the emergence of a bearish rounding top technical pattern.

Technical Analysis Points to $120 Target

Bearish Rounding Top Formation

Solana's price chart displays a concerning rounding top pattern that has developed over recent trading sessions. This technical formation typically signals the end of an uptrend and the beginning of a sustained downward movement.

The gradual nature of Solana's decline has created this rounded structure, with bears systematically selling without creating sudden price spikes. This methodical selling approach eliminates potential rebound opportunities that bulls might typically exploit during rapid selloffs.

Price Targets and Support Levels

From Solana's recent peak of $206 to current support at $159, the cryptocurrency has already experienced a 22% correction. Technical analysis suggests this decline pattern could repeat once SOL breaks below the critical $159 support level.

With current prices hovering just 2.45% above this key support zone, weekend trading volatility could easily trigger a breakdown. Historical data shows weekend sessions often favor bearish momentum in cryptocurrency markets.

Should the $159 support fail, technical projections indicate Solana could target the $120 price level. This represents an additional 26% decline from current levels and could materialize before August concludes if selling pressure persists.

Massive Long Liquidation Creates Selling Pressure

Record $57 Million Long Squeeze

The cryptocurrency derivatives market has witnessed unprecedented liquidation activity in Solana positions. Data indicates over $57 million in long positions were forcibly closed, marking the highest liquidation volume since early February.

This forced selling creates additional downward pressure on Solana's price as leveraged traders are compelled to exit positions at unfavorable levels. The liquidation cascade effect often amplifies bearish momentum in cryptocurrency markets.

Funding Rate Dynamics

Market sentiment indicators show Solana's funding rate has turned negative, reflecting increased demand for short positions. Traders holding short positions are now willing to pay additional fees to maintain their bearish bets, indicating strong conviction in further price declines.

This negative funding environment typically sustains selling pressure as it attracts more traders to establish short positions while discouraging new long positions.

Whale Activity Intensifies Selling Pressure

$17 Million SOL Transfer to Exchanges

Blockchain monitoring services have identified significant whale activity contributing to Solana's price decline. One prominent whale address transferred 108,016 SOL tokens, valued at approximately $17.7 million, to major cryptocurrency exchanges OKX and Binance.

Large token transfers to exchanges typically indicate preparation for selling, as whales rarely move substantial holdings to trading platforms for storage purposes. This whale activity suggests institutional-level investors are reducing their Solana exposure.

Market Impact of Whale Selling

When large holders begin liquidating positions, it often signals broader market concerns and can trigger additional selling from smaller investors. Whale selling creates immediate supply pressure while potentially undermining market confidence in near-term price recovery.

The timing of this whale activity coincides with broader cryptocurrency market weakness, amplifying the negative impact on Solana's price action.

Potential Recovery Signals

Awesome Oscillator Analysis

Despite the overwhelmingly bearish picture, some technical indicators suggest potential exhaustion in selling pressure. The Awesome Oscillator (AO) bars are beginning to show green coloration, even while remaining in negative territory.

This subtle shift often indicates that selling momentum may be waning and could precede a trend reversal. However, confirmation of this potential change would require AO bars to move decisively above the zero line.

Invalidation Scenarios

The bearish forecast for Solana would be invalidated if several conditions are met. Key invalidation signals include sustained buying volume, successful defense of the $159 support level, and positive momentum indicators.

Additionally, broader cryptocurrency market recovery could provide tailwinds for Solana's price, particularly if Bitcoin and Ethereum establish stable upward trends.

Market Outlook and Risk Assessment

Short-term Price Projections

Based on current technical and fundamental analysis, Solana faces elevated risk of continued decline toward the $120 target. The combination of whale selling, liquidation pressure, and bearish technical patterns creates a challenging environment for price recovery.

Weekend trading sessions could prove particularly volatile, with lower liquidity potentially amplifying price movements in either direction. Traders should monitor the $159 support level closely as a critical inflection point.

Broader Market Context

Solana's price weakness reflects broader cryptocurrency market challenges as investors reassess risk appetite amid evolving market conditions. The correlation between major cryptocurrencies suggests Solana's recovery may depend partly on overall market sentiment improvement.

Long-term investors may view current price levels as potential accumulation opportunities, though timing entry points requires careful consideration of ongoing selling pressure and technical support levels.

Conclusion

Solana's current price action presents a complex mix of bearish signals and potential reversal indicators. While whale selling, record liquidations, and technical patterns point toward further downside risk, subtle momentum shifts could signal eventual stabilization.

The $120 target remains a realistic possibility given current market dynamics, though traders should remain alert for potential invalidation signals that could alter the bearish trajectory. Risk management becomes crucial in such volatile conditions, regardless of trading direction or investment timeline.

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