TLDR
- Solana (SOL) dropped below $150 support level after falling 5.2% from $157.98 to $149.79 in 24 hours
- Large whale outflows of 3 million SOL tokens moved to exchanges over three days, triggering selling pressure
- On-chain data shows 3.55 billion coin days destroyed, indicating long-term holders are moving dormant coins
- Network fundamentals remain strong with 7 million daily active wallets and over 100 million daily transactions
- Technical analysis shows SOL needs to reclaim $153 resistance and hold above $150 to prevent deeper decline
Solana has broken below a key price level as large holders move coins that have been sitting idle for months. The cryptocurrency fell to $149.79 after starting the day at $157.98.
The drop represents a 5.2% decline in just 24 hours. Trading volume spiked during the afternoon session as sellers overwhelmed buyers.
On-chain data reveals that long-term holders are moving coins for the first time in months. The Coin Days Destroyed metric hit 3.55 billion, showing dormant tokens are being transferred.
Yesterday marked the third-largest spike in Coin Days Destroyed for $SOL year-to-date, reaching 3.55B. Only February 26th (5.53B) and March 3rd (4.64B) were higher. These spikes often reflect long-dormant coins being spent, signaling possible shifts in holder conviction. pic.twitter.com/SSAvAwIgjS
— glassnode (@glassnode) June 4, 2025
This measure tracks how long coins have been sitting without moving. When old coins finally move, it often means their owners want to sell.
The recent spike ranks as the third largest this year. Only two other events in late February and early March were bigger.
Whale activity has increased across three days. More than 3 million SOL tokens moved to centralized exchanges during this period.
Exchange inflows often signal selling pressure. When large holders move coins to trading platforms, they typically plan to sell.
The outflows totaled an estimated $468 million. This represents a major shift in holder behavior after months of accumulation.
Technical Breakdown Shows Key Support Lost
Price action broke through the $150 psychological level during heavy volume. The breach happened at 13:56 with 182,000 tokens traded in that minute alone.
Multiple attempts to recover above $153 failed throughout the session. Resistance at this level remains firm as bulls struggle to regain control.
A descending channel has formed on the charts. Lower highs and lower lows now dominate the price pattern.
Volume surges at specific times confirm aggressive selling. Spikes occurred at 13:39, 13:45, 13:51, and 13:56 with increasing intensity.
Some buying interest emerged around $149.50 to $150.60. However, this support appears fragile if selling continues.
Network Activity Remains Strong Despite Price Weakness
Solana’s underlying network metrics show continued strength. Daily active addresses reached 7 million users.
Transaction volume exceeded 100 million per day. This level of activity demonstrates ongoing protocol usage despite price declines.
The disconnect between network performance and price action suggests fundamental strength. User adoption continues growing even as token values fall.
Network fees and validator activity remain healthy. These metrics typically correlate with long-term protocol success.
Developer activity on Solana also maintains steady levels. New projects continue building on the platform regardless of short-term price moves.
Recovery attempts need to reclaim the $153 level first. Stabilizing above $150 becomes critical to prevent further downside.
Current price sits around $153.9, though this remains volatile. The 10% weekly decline shows broader selling pressure continues.
