Solana Whale Activity Plummets, Another Dip Ahead?

Recent on-chain data shows a substantial decrease in activity on the Solana network, dropping by 60% from their October 2024 reach.

Glassnode reports 18.5 million active addresses on October 22, 2024 which declined to 7.3 million active addresses on February 23, 2025.

The dramatic decrease in user participation along with transaction frequency comes at a time when markets are also struggling.

The price of Solana reached $167.27 in October during its maximum period of active network addresses. The declining numbers of active apushed Solana price to endure mopre downward pressure.

Decreasing active addresses throughout history usually leads to lowered trading liquidity and diminished market activity thus creating bearish market predictions.

Solana Still 13% Down Intraday

Solana now faces an intense decline in market value as the price reached $135.97 during the last 24 hours showing a 13% decrease.

The market capitalization of Solana has decreased by 10.92% to $67.35 Billion according to CoinMarketCap data and the number of circulating SOL stands at 495.32 million.

Trading volume during the last 24 hours reached $10.52 Billion with a 157.38% increase yet Solana maintained a downward price trend.

The severe selling activity against Solana develops from Binance’s current movement of large SOL token holdings.

Binance hot wallets made multiple substantial SOL token transfers to Wintermute and Kraken as well as Coinbase. The most significant transfers showed Binance moving 23.9K SOL worth $3.83 Million as well as 13.6K SOL worth $2.17 Million and 12.5K SOL totaling $1.99 Million.

The substantial token sales from Binance wallets show the platform sells its positions and thus drives down Solana’s market value.

SOL’s 13% drop intraday increases worries about additional price decline due to ongoing wholesaling activities.

The continuous selling actions of whales can force Solana to drop until new support levels are established.

Solana Technical Analysis Showing a Strong Downtrend

Based on technical market indicators Solana’s price has displayed an ongoing downward movement pattern.

TradingView daily chart shows Solana has continuously declined after reaching its peaks above $260 at the beginning of its cycle.

The descending channel presents a bearish structure because the price fell, establishing both lower highs and lower lows.

A breakdown below $135 poses a substantial threat to the current support area which could make prices drop to $120 or below.

At its present level of 10.34, the Money Flow Index shows that SOL price situation has reached an extreme oversold state.

Market participants may experience relief through buying pressure since the negative sentiment remains powerful enough to restrict any potential market recovery.

The decline of whale presence indicates potential risks for Solana’s performance over the next few months. Historically, large investors have maintained market price stability and have sustained market liquidity.

Network data showing reduced activity suggests that institutional investors as well as long-term holders are making strategic changes that might indicate their anticipation of decreased market prices.

The current technical indicators along with on-chain analysis signal that Solana will experience additional downward pressure unless substantial investor buying takes place.