The crypto market faced a slump, intensifying selling pressure on Solana as trader and investor sentiment turned increasingly bearish. Within this broader sell-off, SOL was hit the hardest. It lost a key support level at $118, which it had successfully defended since March 2024.
A newly created wallet deposited $2 million USDC on the Hyperliquid DEX and opened multiple short positions. This reflects the current market outlook, according to the crypto tracker Onchain Lens. Further analysis of the whale’s activity shows that it has opened a massive SOL short position worth $6.15 million at the $122.91 level.
This sell-off is not limited to the crypto market alone; it has also been observed on Wall Street. According to on-chain analytics platform SoSoValue, U.S.–based Solana spot exchange-traded funds (ETFs) recorded a significant outflow of $2.22 million. This suggests that investors and institutions are withdrawing capital from the underlying asset.
Both developments highlight market sentiment toward Solana, and their impact is reflected in the asset’s price. At press time, SOL plunged 6.65% over the past 24 hours and was trading near $115. Despite the price decline, market participation surged significantly, with SOL’s trading volume jumping 105% to $7.60 billion during the same period.
Looking at the price charts, it appears that SOL has lost one of its strongest key support levels at $118, which it had been holding since March 2024. On the weekly chart, the asset had previously rebounded from this support more than ten times, but SOL has now failed to hold it. On the daily chart, price action suggests that SOL could see a strong downside move, potentially declining by 30% and reaching the $78 level in the coming days.
However, this outlook would only be validated if the asset remains below or closes a daily candle under the $118 level. Technical indicators, including the 50-day Exponential Moving Average (EMA) and the Average Directional Index (ADX), support SOL’s bearish outlook. Notably, SOL was trading below the 50 EMA, indicating that the asset is bearish in the short term. Meanwhile, the ADX, which measures the strength of the current trend, had risen to 33, above the key threshold of 25, suggesting that SOL is experiencing a strong directional trend.
From a derivatives perspective, traders appear to be strongly positioned on the bearish side. According to CoinGlass data, intraday traders are closely monitoring two critical price levels. On the downside, the focus is on $112.8, while on the upside, attention centers around $120.2. At these levels, traders have established significant leveraged positions.
Short‑leveraged positions total $55.15 million, while long‑leveraged positions are far larger, amounting to $241 million. This positioning highlights the market’s current tension, with traders preparing for sharp moves in either direction. This positioning clearly reflects how intraday traders are viewing SOL at the moment. Bearish activity from market participants has strengthened Solana’s negative outlook.
Price action suggests that another 30% drop in SOL could be on the cards if the asset remains below the $118 level.
The Solana network is under renewed selling pressure as the broader crypto market bears down on digital assets. The strongest hit comes as SOL breaks its key support at $118, a level it had defended since March 2024, amid a broader market slump. A new wallet deposited $2 million in USDC on the Hyperliquid DEX and opened multiple short positions, underscoring a bearish market outlook highlighted by Onchain Lens.
On-chain activity shows a large SOL short position of $6.15 million established at the $122.91 level, while ETF outflows and cross-asset selling suggest a broader risk-off environment for Solana. In parallel, U.S.–based Solana ETFs recorded notable outflows, indicating capital moving away from the asset as prices slide. At the time of writing, SOL traded around $115 with a 6.65% intraday drop and a 105% surge in volume to roughly $7.60 billion, reflecting intensified trader participation.
The asset has lost the $118 support on the weekly chart after numerous rebounds, raising the possibility of further downside. A daily-contract setup points to a potential 30% decline toward as low as $78 if the $118 barrier remains breached, with momentum indicators like the 50-day EMA and the ADX reinforcing the bearish view (ADX at 33). Traders appear to be heavily positioned on the downside in the derivatives market, with notable leverage on both sides and eyes on levels near $112.8 and $120.2.
Short-leveraged positions total about $55.15 million, while longs stand around $241 million, signaling continued tension around levels near $112.8 and $120.2. Bearish sentiment is intensifying, suggesting another test of the $118 level could unleash further downside for SOL.
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