Solana (SOL), one of the leading cryptocurrencies in the market, has experienced a sharp 17.6% decline in its price over the last 24 hours on Binance. This sudden plunge has led traders and investors to seek explanations for the volatility.

Major Unstaking by Whales

One of the major factors contributing to the decline in SOL's price is a massive unstaking of SOL tokens by whales. Reports indicate that FTX/Alameda unstaked approximately 3.03 million SOL (valued at $432.5 million) and transferred these funds across multiple wallets. The sheer size of this transaction has raised concerns about potential sell-offs, triggering panic among investors (source).

Additionally, another whale unstaked 79,530 SOL (approximately $10.86 million) just two hours before the price began its sharp decline (source).

Critical Support Levels in Focus

Technical analysis reveals that Solana has fallen by over 20% from its recent peak of $180 and is struggling to maintain support above $150. Analysts indicate that if SOL fails to recover, the next major support zone could be around $136, with bearish momentum still prevailing (source).

Market Sentiment and Trading Volume

The broader cryptocurrency market is also experiencing turbulence, with altcoins facing pressure. Trading volume for SOL has increased significantly during this drop, with real-time data showing a 24-hour trading volume of $8.59 billion, reflecting heightened market activity (source).

Investor Uncertainty: A Time to Buy the Dip?

While the dip in SOL’s price has alarmed some investors, others are seeing this as a potential buying opportunity. Market analysts suggest that if Solana maintains critical support levels and institutional investors re-enter, a rebound could be possible. However, given the recent high-volume movements by whales, caution is advised.

Conclusion

Overall, the sharp 17.6% drop in Solana’s price appears to be closely linked to large-scale unstaking and whale activities. The coming days will be crucial for SOL’s price action, as traders monitor whether the market can stabilize or if further downside remains on the horizon. Investors are advised to stay updated on major wallet movements and key market indicators before making any significant trade decisions.

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