Solana continues to face heavy downside pressure, slipping to $106.64 on April 7—marking a 19% drop from its April 2 high of $131.11. While the broader crypto market has taken a hit amid macroeconomic turmoil, Solana’s decline has been amplified by aggressive whale activity and technical breakdowns at key levels.
In this Sonala price analysis, let’s take a look at SOL’s current performance.
SOL Remains Strong Despite Macro Headwinds
On the surface, SOL still holds a top-ten market cap position at $56 billion, but price action tells a far more cautious story. According to CoinGecko, SOL is down more than 60% from its recent peak near $270, and the three-month trend shows a steady descent with lower highs and lower lows.
Technically, the outlook has deteriorated. Solana is now trading well below its 20-day EMA ($124.20) and the 50-day SMA ($131.07), with the next major moving average—the 200-day SMA—sitting far above at $182.47.
These declining trendlines suggest prolonged bearish control. Momentum indicators confirm the weakness: the RSI has dropped to 33.86, just above oversold territory, and the MACD histogram has flipped fully red, showing increasing bearish momentum.
- Source: Tradingview.
Whale Pressure
But beyond the charts, a major catalyst for the recent plunge is whale selling. On April 4, four whale wallets unlocked a combined 1.79 million SOL from staking positions originally set in April 2021.
Valued then at $37.7 million, the tokens are now worth over $200 million—a 446% gain. Following the unlock, over 420,000 SOL (roughly $50 million) was dumped onto the market. One wallet alone sold 260,000 SOL, while others contributed an additional $16 million in liquidations.
This mass offloading follows an earlier event in March, when bankrupt exchange FTX unstaked 3 million SOL worth over $430 million. Combined, these two events have introduced significant sell pressure into the market at a time when sentiment is already fragile.
Zooming out, this week’s price drop isn’t just a Solana-specific story. Bitcoin’s sharp fall below $77K and the $1.3 trillion market-wide drawdown has traders jittery. Concerns around Donald Trump’s tariff-driven economic policies and potential recession risks in the U.S. have hit both equities and crypto alike.
With Solana now approaching the psychological $100 support level, the next few sessions will be critical. A breakdown below $96 could open the door to deeper losses, with $85 and even $72 as potential downside targets if the broader market sell-off intensifies.
