Solana (SOL) recently experienced a dramatic price drop, reaching a multi-month low of $126.15, marking a 57% decline from its yearly peak of $295. However, the cryptocurrency has since rebounded to $145, fueled by a significant whale purchase of $14 million worth of SOL. This accumulation helped mitigate selling pressure ahead of an upcoming $1.75 billion token unlock, a typically bearish event for the market.
Whales are accumulating $SOL!
— Lookonchain (@lookonchain) February 28, 2025
AHdUMw…qMnj withdrew 54,544 $SOL($7.46M) from #Binance 2 hours ago.
7i6FUR…kp5J withdrew 41,096 $SOL($6.96M) from #Binance 1 hour ago and staked it.https://t.co/CvCPgVEkARhttps://t.co/KsY2f5UzBahttps://t.co/UEwsxSnVlR pic.twitter.com/pCa0MGEdjU
Whale Activity and Potential Recovery
The strategic withdrawal and staking of SOL by a major whale provided much-needed stability to Solana’s price action. Despite the rebound, SOL remains below critical resistance levels. Market analysts suggest that if bullish momentum continues, the price could target the $170 resistance level. A breakout above this zone may pave the way for a rally toward $180.
Adding to Solana’s bullish case, CME Group recently announced plans to introduce Solana (SOL) futures on March 17, pending regulatory approval. If successful, this move will position Solana alongside Bitcoin and Ethereum as one of the few cryptocurrencies with futures trading on the exchange. Analysts believe this development could strengthen the potential for a Solana exchange-traded fund (ETF) in the future.
Solana’s DeFi Struggles
Despite signs of recovery, Solana’s Total Value Locked (TVL) has declined sharply in recent weeks, falling from $12.19 billion to $6.94 billion. This drop reflects a decline in investor confidence and capital outflow from Solana-based decentralized finance (DeFi) projects. A major factor in this downturn has been the crash of Solana’s meme coin sector, whose market capitalization plummeted from $25 billion in January to $8.9 billion.
However, recent market activity suggests that some Solana-based meme coins are rebounding, potentially signaling a resurgence in Solana’s DeFi ecosystem. This recovery could play a key role in SOL’s long-term price trajectory.
Key Technical Indicators
Solana price is approaching a crucial resistance zone between $147.09 and $166.42. If SOL breaks above this range, it could indicate a sustained recovery toward $180. The Parabolic SAR and MACD indicators support a bullish outlook, with signals pointing to increasing buying pressure. Moreover, SOL’s Relative Strength Index (RSI) suggests that the asset was recently oversold, historically a precursor to price reversals.
Also Read: Solana ETFs Gain Momentum: DTCC Listing Sparks Speculation of Spot ETF Approval
With whale accumulation, improving technical indicators, and potential institutional adoption through CME futures, Solana’s price recovery remains a key focus for investors eyeing a breakout above resistance levels.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
