The first week of April suddenly turned bearish for the crypto market after United States President Donald Trump announced new tariffs on various countries. As a result, the Bitcoin price broke below the $85,000 floor and resumed a correction trend in most major altcoins, including SOL. The Solana price now stands at the doorstep of a multi-month support trendline, suggesting a potential breakdown amid whale selling.
For deeper insight into how tariffs are impacting the broader market, read Will Latest U.S. Tariffs Drag Bitcoin Price Below $70K?
Key Highlights:
- On April 4th, the Solana Fear and Greed was recorded at 33%, indicating a fear sentiment among market participants.
- The Solana price is less than 2% short from a bearish breakdown below the yearly support of $112.
- A whale unstaked 315,079 SOL ($37.31 million) and deposited it into Binance, signaling potential profit booking or preparation for a deeper price correction.
SOL Faces Bearish Pressure as Whale Moves Millions in SOL
By press time, the Solana price traded at $114 with an intraday loss of 2.56%. While the downtick followed a broader market uptick, the recent on-chain data highlights substantial whale selling, reinforcing the downtrend.
According to a recent tweet from Solid Intel, a large-scale investor has unstaked a staggering 315,079 SOL, valued at approximately $37.31 million, and deposited it into Binance in the past nine hours. Despite the significant deposit, the whale still maintains a notable position, holding 277,209 SOL, worth around $32.47 million, along with 40,930 hSOL (roughly $5.49 million).
This transaction may indicate profit booking or a strategic move to reduce exposure in SOL in preparing for a further price fall. Historically, such whale transactions may accelerate market selling pressure and lead to prolonged price correction.
Solana Price Teases A Bearish Breakdown Below Multi-Month Support
An analysis of SOL’s daily chart shows a V-top reversal from $147.5 to $114, accounting for a 22.5% fall. This new lower high formation falling the 20-day EMA slope indicates the market continues to follow a sell-the-bounce sentiment.
Amid the global trade tension and whale selling pressure, the Solana price is less than 2% away from a breakdown below the multi-month support of $112. Coinciding closely with the 61.8% Fibonacci retracement level, this support has acted as a major accumulation zone since March 2024.
According to the current SOL Prediction, a decisive breakdown below this crucial support could accelerate selling pressure and drag the Solana price down to the $80 level.
On the other hand, the market participants must closely watch the price behavior at $112 support, as a sign of intact demand pressure could trigger another reversal.
Also Read: Is Bitcoin Heading For a 6-Month Correction? Insight From Onchain Data
