Solana (SOL) is preparing for a potential upturn movement as it has been drawing attention from whales. This increasing interest and enthusiasm in the asset have resulted in massive investment today.
Whale acquires 50,000 SOL
Today, April 7, 2025, Onchain Lens shared data on X that a whale has withdrawn 50,000 SOL worth $5.07 million from Gate.io. This massive withdrawal happens when SOL prices are currently down, suggesting that large investors are capitalizing on market dips to acquire large quantities of SOL tokens.
According to Onchain Lens, this whale is likely to transfer these acquired coins for staking. By staking all these SOL tokens, this whale’s actions signify a long-term commitment to the Solana network. Such a long-term approach is likely to give him good rewards, assuming no substantial changes in the Solana price.
Seven months ago, this whale staked 264,990 SOL worth $52.4 million, earning 5,125 SOL, but it is currently facing a loss of $24.97 million.
With such withdrawal, surging interest, and significant acquisition, it could be possible for Solana to experience an uptrend soon.
Solana price updates
Solana has been struggling for several weeks now due to extended sell-off pressures. The asset is currently trading at $100.05, down 15.7% over the past 24 hours. Its price has also been down 22.8% and 30.0% over the past week and one month ago, respectively. Despite on-chain buy signals, these significant drops indicate that Solana is experiencing weak buying pressure and significant fund outflows.
SOL’s substantial price declines worsened following the recent pronouncement of US tariffs. The rise in trade disputes prompted traders to move money away from riskier assets, including virtual currencies like SOL, in preference for safer investments.
Solana is currently facing a complex situation, as shown by several on-chain indicators. First, although, a huge majority of token holders are at a loss, whales’ activity remains a key factor. Their continued acquisitions (as indicated by the whale above) suggest that Solana could be preparing for a recovery despite the current bearish market sentiment.
However, metrics from Coinglass give a different outlook, showing that Open Interest (OI) on SOL has dropped by 15.34% over the previous day. This decline in OI indicates that traders are closing positions in the Solana market, suggesting declined confidence in the asset. As a result, this decrease in demand could further trigger downward price momentum.
On another a different perspective, technical indicators shows that SOL is currently trading in a Bullish Gartley pattern in the 4-hour daily chart, suggesting potential breakouts from the prolonged downtrend. If adequate buyers come in, SOL could witness a short-term jump, possibly reclaiming the resistance levels of $105 and $112 soon. However, if selling pressure continues to prevail, the asset could drop further to the support levels of $97.31 and $95.11.
