Solana (SOL) has been catching headlines recently, but not for the reasons bulls would like. A viral post on X (formerly Twitter) sent ripples through the crypto market, triggering a significant sell-off. In just 24 hours, SOL’s price tumbled over 8%, leaving traders wondering if this is just a dip or the start of a deeper plunge.

Currently, SOL is hovering around $143. What’s interesting is that while the price is falling, trading volume has exploded, jumping by a massive 130%! This huge increase in trading activity shows that a lot of people are reacting to the price movement, both buying and selling.

What’s Behind the Solana Price Drop?

While high trading volume can sometimes be a positive sign, in this case, the mood is definitely bearish. Big players, often called “whales,” seem to be selling off their SOL holdings. This selling pressure is pushing the price down and has even caused a wave of liquidations, meaning some traders who were betting on SOL going up have lost their positions.

Adding fuel to the fire is news that Binance, one of the biggest crypto exchanges, is also offloading its Solana. If that wasn’t enough, there’s a massive unlock of $1.7 billion worth of SOL tokens scheduled for March 1, 2025. Think of a token unlock like releasing a large number of new shares of a company – it can increase supply and potentially lower the price.

Solana Technical Analysis: Key Levels to Watch

All these factors have taken a toll on SOL. It’s already lost 45% of its value in the last month alone. Now, it’s approaching a critical price level around $130. Historically, this level has acted as strong support, meaning buyers have stepped in around this price to push it back up.

Source: Trading View. SOL/USDT price chart showing potential support levels.

However, analysts are warning that if SOL breaks below this $130 support and closes a daily trading session below $120, things could get worse. Some predict a potential 35% drop from there, which could send SOL tumbling towards the $75 level.

Is There Any Hope for SOL? Smart Money Seems to Think So

Despite the gloomy outlook and price predictions, there’s a curious twist. Data from Coinglass, an on-chain analytics firm that tracks crypto flows, reveals that a significant amount of SOL is actually leaving crypto exchanges. In the past 48 hours, nearly $200 million worth of SOL has been withdrawn from exchanges.

Source: Coinglass. Solana outflow from exchanges in the past 48 hours.

Why is this interesting? Large outflows from exchanges often suggest that investors, especially long-term holders, are accumulating or moving their coins to cold storage, rather than preparing to sell. This could indicate that some believe the current dip is a buying opportunity and are expecting a future price recovery.

Whether this accumulation will be enough to counter the current bearish pressure remains to be seen. The market sentiment is shaky, and SOL faces some significant headwinds. Keep an eye on that $130 support level – it could be crucial for Solana’s next move.