Solana (SOL) Price Shows Resilience Despite a Large Whale Unstaking Over $17M Worth of Coins

Solana's (SOL) price has shown resilience in recent days, remaining above the $143.5 support despite a large whale unstaking over $17 million worth of SOL and most cryptocurrencies facing downward pressure on May 6.

Solana Price Summary:

SOL is currently trading around $147.50, up 2.75%.

The cryptocurrency briefly dipped below the key support level of $143.5.

A 3% surge in Bitcoin's (BTC) price helped push the market into positive territory.

Solana recovered quickly, and this rebound has attracted attention from traders, with trading volume surging by 40% in the past 24 hours.

This increased activity comes as SOL has risen 45% over the past 30 days.

A potentially bearish signal emerged as a whale unstaked 120,197 SOL valued at $17.55 million and sent the funds to Binance, according to Onchain Lens.

This substantial amount of SOL was unstaked after being locked for six months.

During this period of staking, the whale earned a reward of 3,802 SOL but still faced a loss of $7.8 million. The transfer to Binance could indicate an intent to sell, which might introduce short-term selling pressure on SOL's price.

Solana has been coming into the broader blockchain ecosystem with April seeing over $450 million in assets cross-chain into Solana, according to DeFi Llama. Of this sum, more than $300 million originated from Ethereum.

This extensive cross-chain activity highlights the growing confidence of users in Solana to handle large-scale operations cost-effectively. The increased capital flow toward Solana's DeFi and dApp ecosystem demonstrates heightened attention from users and developers.

Solana's revenue surpassed $88 million, making it the dominant platform among Layer 1 and Layer 2 chains with 41% of the total revenue, according to Messari. This performance strength SOL's market position, although sustained growth will require continued network reliability and developer retention.

From a technical analysis perspective, SOL appears to be consolidating in a tight range between $143.5 and $154 over the past two weeks following a breakout above the key resistance level at $143. This sideways price action after a breakout is typically viewed as bullish.

On the daily chart, SOL has formed an inverse head and shoulders pattern, a bullish reversal pattern that occurs at the end of a downtrend. SOL broke above the neckline at $123.49, which validates the potential for an upward move.

The 4-hour chart shows the Relative Strength Index (RSI) moved above the neutral line, indicating bullish momentum. Similarly, the Chaikin Money Flow (CMF) broke above the zero signal line, suggesting increasing buying pressure in the short term.

If SOL breaks above $154, a 15% rally could follow, potentially pushing the price towards the $180 mark. On the other hand, a drop below $143.5 might trigger a fall to $132 in the short term.

For a longer-term perspective, SOL continues to trade above a critical support range extending from $120 to $150 that has historically triggered substantial upward price movements. The $120 level has repeatedly served as strong support during market downturns.

The cryptocurrency is also maintaining a trendline support that has been in place since 2020, protecting an uptrend structure across its monthly timeframe. A potential breakout above $180 to $200 could signal another run toward all-time highs around $300.

The China stimulus and FOMC meeting could provide additional catalysts for SOL's price. China's central bank is preparing to inject 1 trillion yuan (approximately $138 billion) in liquidity into the economy, which could benefit risk assets like cryptocurrencies.

If the Federal Reserve surprises with a rate cut, Solana's price could target $187.80. However, if rates remain unchanged as expected, SOL may continue consolidating within its current bullish structure.