Whales on a Diet: Is Solana’s SOL About to Take a Nosedive? 🐋💔

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  • Pump.fun’s $640M Solana selloff and net outflows reflect intensifying bearish pressure. Who knew whales could be so dramatic?
  • Derivatives data show negative funding and $19M long liquidations, confirming downside conviction. It’s like a bad breakup!

Pump.fun has once again dumped a significant chunk of Solana [SOL] onto Kraken, depositing 156,425 SOL worth $25.74 million. Talk about a fire sale! 🔥

This brings its total deposits to 3.49 million SOL, valued at over $640 million. At this rate, they might as well open a Solana thrift store!

The scale and frequency of these transfers suggest a deliberate exit strategy. Meanwhile, Market Prophit data shows both crowd and smart money sentiment firmly in bearish territory. It’s like watching a sad movie, but with numbers.

This sentiment aligns with SOL’s price action, which has dropped 5.63% in the past 24 hours, now trading around $163.07. Ouch! That’s gotta hurt!

The combined signals indicate weakening confidence across both retail and institutional segments. It’s like a party where everyone’s left early.

Has Solana lost bullish momentum?

Technically, SOL has broken below its ascending trendline after failing to sustain above the $179 resistance zone. It’s like trying to climb a slippery slope!

This rejection from the upper supply band opens the door for a drop toward the next key support between $140 and $145. Will it be a soft landing or a crash landing? 🤔

Moreover, the Stochastic RSI is hovering in the oversold zone, which often signals weak upward momentum. Without strong bullish triggers, the market may see further downside. It’s like waiting for a bus that never comes!

The rejection, coupled with the structural breakdown, reinforces the current bearish outlook and sets up a possible test of the lower demand region soon.

Deeper selling pressure ahead?

Data from CoinGlass confirmed bearish pressure in spot markets, with the 30th of May showing $273.26 million in outflows against $241.56 million in inflows. It’s like a game of musical chairs, and everyone’s scrambling!

This net outflow of $31.7 million reinforces concerns that whales and large holders are reducing exposure rather than accumulating. They’re not just swimming away; they’re diving deep!

These transactions mirror the behavior of Pump.fun and other entities unloading tokens onto exchanges. It’s a sell-off frenzy!

Therefore, the imbalance between supply and demand increases the risk of further drawdowns, especially if no new bullish catalysts emerge to offset the persistent sell-side pressure observed on-chain. It’s like waiting for a miracle that never arrives.

Will negative funding drag prices further?

The OI-Weighted Funding Rate has slipped into negative territory again, at –0.0015% at press time. It’s like the market is on a rollercoaster, but the ride is getting bumpy!

This shift reveals growing demand for short positions and signals that market participants are increasingly hedging against downside risk. Everyone’s looking for a life raft!

Funding flipping negative after a sustained bullish phase shows a change in sentiment within derivatives markets. Traders now expect further declines, possibly toward the $140 region. It’s like a storm brewing on the horizon!

Unless there is a quick reversal in open interest behavior, shorts could dominate price action, pressuring SOL to explore lower levels in the short term. Buckle up!

Have long traders capitulated?

Liquidation data shows a sharp imbalance between long and short positions. On the 30th of May, long liquidations totaled $18.99 million, while short liquidations only reached $566.7K. It’s like a one-sided boxing match!

Bybit led the losses with over $10.9 million in longs wiped out, followed by Binance and OKX. This lopsided data shows that leveraged bulls were caught off-guard by the rejection from $179 and the subsequent dip. Surprise! 🎉

With technical breakdowns, bearish sentiment, negative funding, and aggressive sell-offs converging, SOL faces a critical juncture. It’s like a game of chess, and the king is in check!

The $140–$145 support zone will now determine whether bulls can mount a defense or whether sellers will drive prices even lower. It’s a nail-biter!

If current conditions persist, a breach below this level could accelerate downside momentum and reinforce the ongoing bearish trend. Hold onto your hats, folks!

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2025-05-31 09:48