Solana (SOL) seems to be drawing attention from crypto users following recent actions by whales to unstake massive amounts of SOL tokens and dump them to exchanges.
Whale unstakes 63,081.6 SOL
In a post shared by Onchain Lens, a whale who had been dormant for 1.6 years today woke up and unstaked 63,081.6 SOL tokens worth $7.49 million and deposited them into Kraken, making a return of $6.2 million.
The whale’s trading activity is a testimony that crypto staking is a profitable activity and is becoming an increasingly popular method that crypto holders use to generate passive income. Staking platforms normally have a lock-in period, a time limit when staked tokens cannot be sold or withdrawn. This duration is a barter trade for earning rewards. However, the major risk facing staking services is crypto price volatility. Crypto prices can swing extremely, affecting the value of staked tokens.
The unstaking activity by this whale represents a growing trend whereby multiple token holders, popularly recognised as whales, are being seen unstaking their Solana coins. So far, numerous whales have transferred SOL tokens valued at $46 million to exchanges, triggering further declining momentum for the asset. Such large-scale sell-offs normally suggest a bearish market sentiment, causing selling pressure to exchanges.
The broader crypto market, including assets like Bitcoin, Solana, and others, has been adversely affected by the current economic uncertainty, especially the US trade tariffs.
The ongoing substantial quantities of Solana coins being unstaked influenced greater scrutiny for the TVL in all Solana staking networks. Market analysis shows that the current SOL withdrawal is a strategic move by big investors, not a deliberate departure from the Solana network. They might be reorganizing their holdings for optimized gains.
Solana price updates
Solana has witnessed a substantial downturn for several weeks now, resulting in losses for holders. The asset’s price has been in a robust downtrend since climbing to $269.17 on February 24, 2025, more than two months ago. As of today, April 4, the asset’s value is standing at $118.55, down 3.7% over the past 24 hours. The asset has also experienced significant declines on weekly and monthly timeframes, down by 7.6% and 15.7%, respectively.
Such constant decreases have put Solana investors in a tight situation, most noticing their holdings recording losses. This difficult situation might have influenced some holders to sell their tokens to minimize further losses, causing the price to drop further.
Amid this decline in market participation, several indicators point out that SOL is facing a greater loss of confidence among holders. Metrics from Coinglass show that Solana’s Open Interest (IO) fell by 2.34% over the previous day. This drop in IO shows that traders are closing positions on the SOL market as they are discouraged by the declining prices. Furthermore, transaction volume has decreased by 32.74% over yesterday, meaning that a whopping $5.29 billion has been dumped into exchanges, indicating selling by investors. This decrease in demand could further cause greater downtrend momentum.
While Solana is currently in the formation of a falling wedge pattern, its recent price fall below the significant support level of $120 suggests that altcoin is set for another drop.
With its current price of $118.55, if this market dip does not attract enough buyers, then the asset is preparing for further decline to the second support level of $115.45 soon.
The current bearish price action, falling wedge pattern, and increasing numbers of positions being closed in the market signify that Solana could be heading towards a further price decline. If the asset continues to experience a surge in selling pressure and fewer buys, it could be primed to fall toward the $115.45 support level and accelerate a further price drop.
