Solana price crashed to a multi-month low on Friday before stabilizing after a whale stepped in to buy the dip.
Solana (SOL) bottomed at $126.15, down by 57% from its highest point this year, and then bounced back to $145.
One factor behind the recovery was a whale purchase on Friday, signaling confidence in a potential bounce. According to Lookonchain, the whale initially withdrew $12 million worth of Solana from Binance and staked it. Later in the day, the same whale executed two more similar transactions, bringing the cumulative purchase to $14 million.
These purchases were notable because they occurred just a day before a $1.75 billion Solana token unlock. A token unlock is typically bearish as it increases the circulating supply, diluting existing holdings.
The timing also coincided with broader concerns about Solana’s future, particularly after meme coins in its ecosystem saw significant losses. The market cap of all Solana meme coins has dropped from over $25 billion in January to $8.9 billion today. Official Trump (TRUMP) market cap has dropped from $15 billion to $2.5 billion.
Solana’s total value locked has dropped to $5.38 billion, down from its year-to-date high of $9.35 billion. Similarly, weekly decentralized exchange volume on the network has fallen 20% to $17 billion.
Solana’s recovery also aligned with a slight rebound in U.S. equities. The Dow Jones rose 200 points, while the S&P 500 and Nasdaq 100 gained 30 and 72 points, respectively.
Solana price analysis
Solana peaked at $295 earlier this year before plunging to $126.15, its lowest level since September 6. It dropped below the crucial $170 support level, which marked the lowest swing on January 13, as well as the double-top pattern neckline at $265—a pattern often considered a bearish signal.
Solana is now approaching a death cross, where the 50-day and 200-day moving averages flip, which could indicate further downside. If this trend continues, bears may target the $126 low, followed by the psychological support at $100.
On the other hand, there is a chance Solana could rebound after the token unlock. This would be the reverse of the typical “buy the rumor, sell the news” scenario, potentially pushing SOL back toward $170 resistance.
