Large whales have sold off over $46.3 million worth of SOL, putting downward pressure on price
SOL price has fallen below key support levels and is hovering around $105
Technical indicators suggest a potential 20% drop to $80 if $100 support fails
Solana has launched “Confidential Balances” on mainnet, expanding privacy features
Market sentiment is affected by Trump’s tariff announcements, causing broader crypto market volatility
The Solana cryptocurrency has been facing significant selling pressure after several large holders, known as “whales,” dumped substantial amounts of SOL tokens on the market. Data from on-chain analytics platform Lookonchain shows that one whale, identified as ‘4WRee,’ unstaked nearly 160,000 SOL worth approximately $16.5 million and sold 60,000 SOL at around $102.
Another whale, identified as ‘5cPair,’ sold nearly 89,734 SOL at $108.
These large sales, totaling about $46.3 million, have shaken the market and increased volatility ahead of U.S. economic data releases.
The price movement comes after SOL faced rejection near the $300 level and plunged, breaking below support levels that had held throughout most of 2024.
Currently, SOL is trading around the $105 mark, close to the psychologically important $100 threshold.
Technical Picture Suggests Potential Further Decline
Technical analysis indicates that SOL has reached a crucial support level at the 200-day moving average on the weekly chart. This is the first time in history that SOL has tested this particular indicator, suggesting that bears may be gaining strength.
If SOL loses the $100 support range, analysts suggest it could suffer a 20% pullback.
The Chaikin Money Flow (CMF) indicator, which measures money flowing in and out of an asset, has dropped below zero for the first time since March 2023. This negative reading signals weakness in the market and rising selling pressure.
Should the price break below the 200-day weekly moving average at $94.94, SOL could potentially fall further to test support near $80.
The intensity of any potential rebound would depend entirely on buyer strength.
Confidential Balances Launch Brings New Privacy Features
Despite the price pressure, Solana developers continue to push technological advancements with the launch of “Confidential Balances Token Extension” on the mainnet. This feature is described as the “first ZK-powered encrypted token standard built for institutional compliance.”
The new technology maintains Solana’s signature sub-second transaction finality while adding privacy capabilities.
Confidential Balances is designed as a comprehensive privacy solution that extends beyond just transfers. It now includes three key components: encrypted balances and transfers, mint/burn operations with discrete total supply, and discrete fee handling.
Developers can implement these features in server-side Rust backends, Wallet-as-a-Service integrations for custodial solutions, and decentralized applications with trusted confidential token handling.
The solution aims to enable practical applications such as encrypted payroll systems, secure business-to-business payment transfers, privacy-preserving wallets, and consumer applications on Solana.
Market Context and Trump Tariff Impact
SOL’s price movements are happening against a backdrop of broader market volatility. U.S. President Donald Trump’s statements about tariffs being beneficial for the American economy have escalated trade tensions, particularly with China.
Leading investment banks including JP Morgan and Goldman Sachs have warned that new tariff regimes could hamper economic growth outlook and increase recession probability in the United States.
The derivatives market reflects this uncertainty, with $19.9 million in long and short positions liquidated in a 24-hour period. Solana’s open interest declined by 3.36% to $4.03 billion, indicating growing risk-off sentiment among traders.
This macroeconomic pressure appears to be outweighing any positive momentum from Solana’s technological upgrades.
With the 50-day, 100-day, and 200-day Exponential Moving Averages all breached and now acting as resistance, the probability of a smooth recovery appears limited in the short term.
Memecoin Platform Changes
The Solana ecosystem has been a dominant hub for memecoins in recent months, with PumpFun serving as a top launchpad. However, PumpFun experienced declining engagement after extreme tactics were used to draw attention to launched tokens via its livestream feature.
This led to regulatory scrutiny and suspension of services in countries like the United Kingdom, forcing the platform to temporarily halt its livestream feature five months ago.
Recently, PumpFun has undergone rebranding efforts and relaunched the livestream feature, potentially repositioning Solana as a hub with renewed product offerings.
Whether these ecosystem developments can boost sentiment in the long term remains to be seen, as the coin currently remains heavily influenced by broader financial market trends.
The $100 level represents a psychological support that has been tested multiple times throughout 2024. If this level fails to hold, analysts suggest the next crucial support would be around $75.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 
