Why Is Solana Price Down Today?

Key Insights

• Solana’s price could be affected by the potential sale of 111,945 SOL, acquired at $17.16 million and now worth $9.78 million.
• Solana ETF net flow was positive but with no strength, recording $478.9 in net inflows yesterday, led by QSOL.
• Does this mean SOL continues to fall as the crypto market dumped 3% and wiped out $70 billion?

Solana (SOL) has been trading in a forceful downward move. A few months ago, the altcoin traded above $250, but now struggles to stay above $80.

The drop has been symmetrical across the crypto market. Particularly, the drop in the past 24 hours, whales, and Solana ETF inflows have participated in it. Also, the broader financial sector crash saw crypto lose about $70 billion, with the SOL price among those hit hard.

Whale Unstakes and Deposits Solana Into Binance: Looming Sell?

According to data from Onchain Lens, a whale recently unstaked and sent 60,000 SOL, worth $4.42 million, to Binance.

This move came after a first withdrawal of 111,945 SOL from the exchange, valued at $17.16 million for staking. However, at its current value, Solana is worth less than $9.78 million. As a result, the withdrawal resulted in a $7.38 million loss.

Such token movements often signal that sales are coming up. Whales move assets to exchanges to sell their holdings. As such, the Binance deposit could add to the selling pressure on Solana.

Solana whale activity data | Source: Onchain Lens/X

According to CoinMarketCap, the price of Solana fell 3% in the past 24 hours, closing at about $78.24, down from $79.27. The token has also lost more than 10% of its value in the last week. This whale’s actions likely made the market more fearful, leading to the sell-off.

Are Small SOL ETF Inflows Affecting SOL Prices?

Solana ETF inflows also contributed to this drop. According to SolanaFloor, Solana ETFs recorded only $478.9K in net inflows on February 11th. This number was mostly made up of QSOL’s $478.9K, even less than half a million dollars. The zero activity by other ETFs explained why these inflows were very low.

For February 12th, Solana ETF inflows were also positive at $2.7 million. Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) saw net flows of more than $530 million.

Not that all were dormant; some were losing capital. For instance, TSOL’s net flow was negative $97.22 million. The total Assets Under Management (AUM) were $673.76 million, and the overall net flows were $881.7 million.

SOL ETF inflow data | Source: SolanaFloor/X

That meant that there was still little capital inflow. That was a reflection of institutions’ lack of interest in buying. In fact, some were selling their assets. These weak inflows contributed to the decline by failing to stop the selling pressure.

Solana Price Prediction: Will SOL Price Continue Falling?

On the charts, the decline was evident. SOL price was trading near $77.35 on the weekly chart after a clear break below the $95 support area. The 200-week EMA was at $121, flipping it into a long-term resistance.

A significant increase in volume followed the drop, confirming the presence of selling pressure. Therefore, if the weekly candle closes below $77, the next significant support level may be $51.23. This meant that the price could move toward the $50 zone.

Solana price action chart | Source: TradingView

On the other hand, if the price remained above $77 and reclaimed $95, it would mean that buyers were back. The EMA at the $121 zone would be a key barrier to the upside.

So, to reach $50, the price needed to stay weak while sell volume rose. If it does not break lower, it would likely enter a consolidation or return to $95–$121.

Altogether, weak capital inflows from Solana ETFs, a general bear market, and the whale sell-off contributed to the decline in Solana’s price at the time of writing.

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