Solana traders alert! – Uncovering the risks beneath the 30% rally
The post Solana traders alert! – Uncovering the risks beneath the 30% rally appeared on BitcoinEthereumNews.com.
Solana climbed to $125, but whale exits and dense supply zones near $140 raised the risk of a long squeeze. The recent bounce looked more like a temporary relief rally. Despite Solana’s[SOL] recent recovery to $120, large holders remain deep in the red, which affects the overall market sentiment. On-chain data shows a major whale recently liquidated 274,188 SOL at an average price of $108. With an initial cost basis of $148, this capitulation locked in a staggering $11 million in realized losses. Even with SOL now hovering around $125, marking a 30% bounce from its April 7 low of $95, the whale would still be underwater. This behavior reflects continued distribution among smart money, as whales use liquidity spikes to exit rather than accumulate. For retail traders, it’s a caution flag amid a fragile macro and on-chain backdrop. Key supply zone in focus The UTXO Realized Price Distribution (URPD) provides a granular breakdown of where Solana coins were last transacted and mapped against price levels. For SOL, the data highlights three major supply clusters – around $100, $120, and $140. These concentrations indicate that a significant share of the circulating supply was acquired at these levels. Among them, the $140 zone stands out, with over 27.8 million SOL concentrated there, accounting for approximately 4.75% of the total circulating supply. This cluster represents a key area of resistance, as many holders are either near breakeven or facing unrealized losses. Source: Glassnode Therefore, the risk of whale-driven sell-offs remains if SOL fails to reclaim the $140 level. A price move back to this threshold could lead to holders shifting into unrealized profits, potentially triggering a bullish rotation driven by FOMO and market greed. Additionally, 38 million SOL remain clustered between $117 and $120, making this range a potential hotspot for profit-taking…
Filed under: News - @ April 13, 2025 8:02 am