Solana: Analyze the impact of the SOL whale sell-off of $45.7 million

If Solana breaks below the $175 mark, it could fall 11% to the $156 level.
Traders were over-leveraged, with the low end at $182.1 and the high end at $193.2.
Solana [SOL] is the fifth largest cryptocurrency in the world by market capitalization, and its value appears to be weakening by the day due to ongoing market uncertainty.

Whale dumps $45.7 million worth of SOL
During the market downturn, blockchain-based trade tracker Whale Alert posted on X (formerly known as Twitter) that a cryptocurrency giant had sold 246,064 SOL worth $45.76 million to Binance.

As of now, the whale’s wallet address is still unknown, which has raised concerns among investors about a potential sell-off.

Additionally, Binance saw a sharp decline when the SOL price reached key horizontal support at $176 and the 200-day exponential Moving average (EMA).

Solana technical analysis and critical level
This key support level is critical for SOL. Expert technical analysis shows that if the altcoin breaks through the 200 EMA and closes below the daily chart of $174.5, it has a good chance of falling by 11%.

It could reach the $156 level in the future.

Conversely, if SOL manages to stay above 200 EMA, it could once again show upward momentum to reach the $220 mark.

On-chain indicators are mixed
According to on-chain analytics firm Coinglass, by analyzing the market sentiment and technical outlook of SOL, investors and long-term holders appear to be dumping their holdings onto the exchange.

Data from the spot inflow/outflow indicator shows that the exchange has seen more than $61 million in SOL outflows in the last 24 hours.

Outflows in this scenario indicate a potential selling signal and have the potential to create selling pressure, causing the altcoin price to fall further.

Principal clearing area
According to Coinglass, as of now, the main liquidation levels are at $182.1 below and $193.2 above, and day traders are overleveraged at these levels.

If market sentiment remains unchanged and the price reaches the $182.1 level, long positions worth nearly $1116.1 million will be liquidated.

Conversely, if sentiment shifts and the price rises to the $193.2 level, short positions worth about $14.19 million will be liquidated.

Combined with these on-chain indicators, it appears that traders with long positions may be stronger than short sellers.

At the time of writing, SOL was trading near $192, and the price has edged up 1.10% in the last 24 hours.

But its trading volume fell 5.5 percent over the same period, indicating that traders and investors were less engaged compared to the previous day.