Solana: Assessing impact of $22.9M whale action on SOL prices

Whale deposits of $22.9M have impacted SOL’s liquidity, signaling potential price fluctuations. Social metrics decline, but long liquidations suggest bullish pressure on SOL’s price. Whale activity continued to influence Solana’s [SOL] market dynamics, as a large deposit of 132,573 SOL, valued at $22.9 million, was made into Kraken recently. The sender? PumpFun—already responsible for over 2 million SOL worth nearly $340 million in transfers this year. At press time, SOL traded at $173.80, up 0.60% in 24 hours. Naturally, such large transfers hinted at potential volatility. However, the broader market sentiment and key technical indicators also play a pivotal role in shaping the coin’s price trajectory. SOL shifting sentiment: Declining social dominance and emerging bullish funding rates Interestingly, Social Dominance for Solana has seen a significant decline, dropping to 3.56% on the 11th of May, from its peak of 18.93% in January 2025. Alongside this, Social Volume has decreased, as it stood at 122, a stark drop from the highs earlier this year. In late January, Social Volume surged to over 5,400, signaling a period of heightened market activity and attention. Source: Santiment The OI-Weighted Funding Rate for SOL recently flipped positive, to +0.0130%, suggesting traders leaned slightly bullish with increasing long positions. In past trends, these Funding Rate changes have often coincided with upward price movements, though caution is required. Price squeeze potential: Liquidation heatmap and long vs short trends The Liquidation Heatmap for Solana (SOL) indicated significant risks around key price levels. Notably, near $175, the heatmap shows concentrated long liquidation levels. This suggested that any upward momentum might trigger a price squeeze, clearing out long positions and pushing prices higher. Conversely, if SOL’s price fails to break through key resistance levels, there could be increased selling pressure. Source: CoinGlass Liquidation data shows market imbalance The total liquidation data for Solana shows a significant imbalance in market sentiment. At the time of writing, short liquidations hit $1.8 million, while long liquidations totaled $3.33 million—a clear imbalance. This suggests that the market is currently more vulnerable to upward price pressure due to the higher number of long liquidations. As the price of SOL fluctuates, these liquidations can contribute to sharp price movements, with long liquidations potentially leading to a squeeze. Fibonacci levels and RSI suggest critical price action Solana’s (SOL) recent price movement is testing important Fibonacci levels, particularly the 1.618 extension at $163.53 and the 2.618 extension at $177.20. These key technical levels indicate where Solana might face resistance or support. Additionally, the Relative Strength Index (RSI) stood at 74.21, suggesting that SOL could be in overbought territory. Overbought conditions typically signal that the asset may face a correction if buying pressure subsides. Therefore, SOL’s ability to break through these levels or pull back will depend heavily on how the market reacts to these critical technical signals. Source: TradingView Will SOL continue its uptrend or face a correction? In sum, bullish signals from whales and Funding Rates are clashing with waning retail interest and an overbought RSI. What happens near $175–$177.20 could define SOL’s short-term fate—either a breakout or a much-needed cooldown. Share Share Tweet