#salona Retraces from $253 to $222: What Comes Next?
Solana (SOL) has pulled back from ~$253 to $222 amid a broader crypto liquidation wave, whale-driven supply pressures, and profit-taking. The key question now is whether $220 can hold as support or if deeper downside awaits.
Market Context
The retracement comes during a late-September 2025 risk-off phase that triggered over $1.5B in crypto liquidations. Strong prior gains across altcoins, including Solana, became vulnerable to profit-taking as market-wide deleveraging set in.
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What Happened
SOL’s rally into the $240–$255 zone reversed sharply to $222 on September 22. The move was accelerated by large whale transfers to exchanges and a spike in selling volume, signaling distribution by major holders.
On-Chain and Flow Dynamics
Whale activity: Multiple high-value transfers, including to Coinbase Institutional wallets, boosted sell-side liquidity.
Exchange flows: Net outflows during the prior accumulation flipped to inflows, suggesting holders took profits and reloaded exchange balances for selling.
Takeaway: The mix of earlier accumulation and sudden distribution points to a volatile structure—sharp rallies when supply tightens, quick drops when whales redeploy coins.
Technical Picture
Support: $220–$225 remains the immediate floor; a breakdown exposes $200–$210.
Resistance: $237–$250 is the ceiling. A breakout here could reignite the uptrend.
Momentum: Oscillators are nearing oversold, raising bounce potential, but true reversal requires reclaiming resistance with volume.
Scenarios to Watch
1. Bearish continuation – Break below $220 → retest $200–$210.
2. Range consolidation – Stability between $220–$250 with mixed signals.
3. Bullish reversal – Bounce from ~$220 with breakout above $237–$250 → opens path to $270–$300.
Strategic View
Current holders: Tighten stops below $220; trim exposure on weakness.
New entrants: Scale entries between $210–$240 only if structure holds.
Short-term traders: Track exchange inflows and whale alerts; volatility remains high.
