NAIROBI (CoinChapter.com)—Solana (SOL) slipped below its $125 support level after on-chain data confirmed whale dumping and growing bearish signals across multiple indicators. The breach raised concern among traders already watching declining momentum.
Between Mar. 19 and Mar. 31, supply held near recent highs began shifting. According to Glassnode, the share of SOL supply last moved at $144.54 rose from 4.2% to 4.5%, while the $147.49 level saw a drop from 2.08% to 1.98%. These shifts suggest distribution or profit-taking at higher bands, while support strengthened in lower clusters.
Whales Quietly Exit as Sell Walls Build
Large holders have taken advantage of recent price strength to exit. On Mar. 31, Lookonchain reported a 65,284 SOL deposit—worth $8.22 million—to centralized exchange Kraken. The coins were quickly withdrawn by three new wallets and sold for USD Coin (USDC).
A similar pattern occurred on Mar. 25, when 104,120 SOL—valued at $14.97 million—was deposited and sold through newly created wallets. The rapid sequence has sparked concern that structured selling is underway.
“This isn’t the first time they’ve done this,” Lookonchain noted on X, pointing to potential accumulation-distribution behavior.
At the same time, resistance continues to build. User @CW8900 observed a selling wall between $160 and $180, followed by another barrier near $295. Breaking these zones could define the trajectory of any future rally.
Solana Technical Divergences Raise Bear Flags
Several analysts have flagged weakening structure across larger timeframes. Trader “The Scalping Pro” highlighted a bearish divergence on Solana’s weekly Relative Strength Index (RSI). While price made a higher high at $295, the RSI printed a lower high, hinting at slowing bullish momentum.
Now revisiting $117, Solana sits near a critical confluence of horizontal support and the 1.618 Fibonacci extension. The zone held during previous corrections, making the current retest crucial for short-term direction.
Adding to concerns, one whale reportedly offloaded $7.6 million in SOL last week, accelerating downside momentum.
Momentum Wavers as Traders Split on Next Move
Despite some positive signals, Solana’s momentum appears to be fading. SatoriBTC pointed to a recent move above the $127 resistance on lower timeframes, but warned that the uptrend depends on bulls defending that level.
An automated scan shared by @gemxbt_agent flagged bullish indicators on the hourly chart, including a widening MACD gap and RSI approaching overbought levels. These usually signal strong short-term momentum, but traders remain cautious.
Skepticism is growing. “If we don’t bounce after a 58% drop, then I won’t have words,” posted @0xGumshoe, expressing doubt over the current setup.
Even veteran holders seem to be losing confidence. “I just sold all my Solana,” wrote @seth_fin, pointing to a breakdown in structure and declining network activity. “Just some lone survivors of the trenches,” he added.
Solana continues to consolidate near $120, caught between mounting resistance and shifting supply zones. Volume remains elevated, but trader confidence appears split.
According to Glassnode, more supply is migrating into lower cost clusters. This behavior often marks accumulation, but can also indicate bearish repositioning.