Solana (SOL) has attracted significant investor attention due to its recent volatile price fluctuations.
Despite positive signals regarding network performance and long-term potential, whale activity suggests that SOL may be at risk of a sell-off. What factors will determine SOL's next direction?
Whale movements: increasing selling pressure
Recently, the market has witnessed a series of sales and unlocks from large wallets, raising concerns about selling pressure on SOL.
On May 12, 2025, a whale released 103,040.6 SOL, equivalent to $17.7 million. Separately, a wallet linked to FTX/Alameda unlocked 187,625 SOL worth $32.24 million.
On the same day, Pump.fun, a token issuance platform on Solana, transferred 132,000 SOL to the Kraken exchange.
These actions indicate that large investors are taking profits after the recent rise in SOL's price, reflecting a cautious sentiment amid market volatility.
Status of the Solana network: Strength still confirmed
Despite increasing selling pressure from whales, the Solana network continues to demonstrate exceptional strength in the blockchain ecosystem. Solana led all blockchains in revenue in the first quarter of 2025, reaching over $200 million, surpassing Ethereum and BNB Chain.
Data from DeFiLlama also shows that Solana ranks first in trading volume on DEX. Over the past 30 days, the Solana network processed over $81.8 billion in transactions, capturing 24.25% of the market.
'Solana continues to prove its strength in the crypto industry! Leadership in DEX volume is clear evidence of its scalability and robustness,' said Merlijn Trader.
However, not all aspects are positive. According to Dune Analytics, the Solana network faces a high rate of transaction failures, with nearly 40% of non-voting transactions failing. SOL Price Analysis: Divided Market Sentiments
The price of SOL reflects a clear divergence in market sentiment, with both positive and negative signals. On the bullish side, many analysts remain optimistic about SOL's growth potential. A crypto expert stated on X that 'the summer of Solana is approaching,' forecasting a strong growth phase.
Another analyst suggested that SOL might be undervalued relative to its fundamental metrics, based on network revenues and activity in DeFi. Analyst Ali also noted that if SOL surpasses the $200 mark, a significant bull market could begin. However, negative signals cannot be ignored. Inmortalcrypto warned that weekend surges following a green week often signal local maxima, indicating that SOL may face a correction. He believes that the $140-160 range would be a reasonable entry point in this scenario.
Is SOL at risk of a sell-off after its rapid rise?
On-chain data and market sentiment suggest that SOL is at a critical moment. Selling pressure from whales, particularly from large wallets such as FTX/Alameda and Pump.fun, could lead to a short-term correction for SOL, especially given that the price has risen to $180 without significant pullbacks.
However, due to leading revenues and high trading volumes on decentralized exchanges, Solana's fundamental strength provides long-term support for SOL. Projects like Pump.fun, despite controversies regarding token quality, still substantially contribute to network activity.
If SOL can maintain above the support level of $160 and overcome selling pressure from whales, the $200 mark is quite achievable, paving the way for a stronger rally, as predicted by many analysts.#BinanceSquare #Binance #crypto #NewsTrade #TradeStories $SOL
