Solana (SOL) Price Drops 3.27% to $171.07

Solana price dropped 3.27% to $171.07 on May 25, 2025. The decline came after SOL briefly spiked above $181 earlier in the weekend.

Solana price dropped 3.27% over the past 24 hour to reach $171.07 on Thursday, marking a pullback after a brief spike above $181 earlier in the weekend.

The slight volatility followed a politically charged event on the Solana blockchain, which involved a Trump memecoin dinner and was met with mixed reactions.

This controversy ultimately triggered a quick sell-off as market participants reacted to the unfolding events.

Despite the pullback, SOL is still up 7% for the week and 16.9% over the past 30 days. The token also briefly rose to become the fifth largest cryptocurrency before retreating.

Newly created wallet on Binance had 20,009 SOL, valued at $3.53 million, withdrawn from Binance. The wallet immediately staked 19,875 SOL and sent 134 SOL to another staking address.

This brought the wallet’s total staked holdings to 9,270.4 SOL, amounting to $1.6 million. The substantial staking activity showcases long-term conviction from large holders.

However, market reactions to this whale activity have remained minimal. Broader market signals do not yet indicate a strong upward trend.

Long Liquidations Outpace Shorts as Traders Take Hits

On Thursday, major exchanges saw long liquidations reach $6.1 million, dwarfing the $326,000 in short liquidations during the same period.

Binance alone accounted for $2.76 million in long liquidations. This stark imbalance highlights the market punishing overleveraged bullish traders.

Such a liquidation pattern often signals cooling market conditions or potential reversals. The data emphasizes the need for traders to use caution if they are still heavily positioned long.

Despite the heavy liquidations, 68.95% of traders on Binance held long positions in SOL at press time, with a long-to-short ratio of 2.22.

This shows that most retail traders remain optimistic even after the wave of liquidations. However, such lopsided sentiment is usually followed by more volatility.

Technical Analysis: SOL/USD Remains Range-Bound

Solana is currently trading at $172.34 and is still struggling to break past the 0.786 Fibonacci resistance at $193.

While recent price action shows some signs of recovery, momentum has stalled. The Relative Strength Index (RSI) also cooled to 61.87 from previous highs.

This level indicates mild bullish control but not strong enough to confirm a breakout. For bulls, reclaiming the 0.786 Fibonacci zone at $193 is crucial to target the next Fibonacci zone at $229.46.

On the other hand, repeated failures at this level could ultimately reinforce range-bound trading.

Solana price broke below its mid-term ascending channel and the 50-period exponential moving average at $174.56. The MACD also shows a bearish crossover with a widening histogram.

Price is now testing immediate support at $173.06. A break below this level could see further weakness toward $165.50, then $159.57 and $153.94.

Spot market flows on May 25 revealed $158.93 million in outflows compared to $141.42 million in inflows, creating a net outflow despite the whale staking activity.

This divergence suggests that while some whales are accumulating, broader market participants continue exiting positions. Short-term price structure remains pressured by ongoing profit-taking.