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Solana (SOL) has taken a steep hit, falling 12.38% in the past week—from $206 to a local low of $159. At the time of writing, SOL trades around $162, down nearly 4% on the day. This sharp correction has pushed the asset into a descending channel, with momentum indicators flashing strong bearish signals.
Whales Exit, Triggering Bearish Sentiment
While retail traders are buying the dip, whales are offloading large positions. On-chain data shows a whale recently deposited 108,016 SOL (worth $17.74 million) into centralized exchanges OKX and Binance. Such deposits often signal intent to sell, adding downward pressure on price.
Whale KMhcqN deposited 108,016 $SOL($17.74M) into #OKX and #Binance in the past 8 hours.https://t.co/j3nAb4qRGa pic.twitter.com/7tkgt6YoSy
— Lookonchain (@lookonchain) August 2, 2025
For the past month, Solana whales had largely stayed on the sidelines in the spot market. However, the recent downturn seems to have spurred them into action—this time, to close positions rather than accumulate more.
Shift Toward Derivatives, But Not for Bullish Bets
Despite the slowdown in spot activity, whale-sized orders have reappeared in the derivatives market. According to CryptoQuant, Solana’s Futures Average Order Size has increased, indicating whale participation in leveraged trades.
Open Interest has dropped 7.28% to $9.3 billion, while derivatives volume has jumped by 4.62% to $26.72 billion—suggesting renewed activity but leaning bearish. The Long/Short Ratio remains below 1, and Binance’s top trader ratio shows a 2.57 tilt toward shorts, indicating most traders are betting on further downside.
Retail Buying Persists Despite Selling Pressure
Interestingly, retail investors continue to accumulate SOL. Solana has recorded a negative Spot Netflow for seven straight days, signaling that more tokens are being withdrawn from exchanges than deposited. The current Netflow stands at -$1.86 million, down significantly from -$95.49 million on August 1.
Also Read: Solana Retail Longs Spike as SOL Eyes $180 Breakout
Whether retail confidence will be enough to counteract whale selling remains to be seen.
Technical indicators like the RSI (41) and Stochastic RSI (0.07) suggest SOL is nearing oversold territory. If bearish momentum continues, SOL may test support at $154. However, if retail accumulation holds, the altcoin could rebound toward $183.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
