Solana Faces Market Turbulence: Analyzing the Impact of GDP Woes and Musk’s Exit
The cryptocurrency market experienced a significant downturn today, with Solana (SOL) leading the declines as prices collapsed across major digital assets. The current price of SOL stands at 154.12000000 USDT, reflecting the heightened volatility and panic among investors. Market sentiment took a further hit following Elon Musk’s sudden resignation from a government advisory role, which compounded existing macroeconomic concerns stemming from disappointing GDP figures. This article delves into the key factors driving Solana’s recent price action and explores the broader implications for the crypto market.
Crypto Market Plunges Amid GDP Concerns and Elon Musk’s Exit
The cryptocurrency market faced a sharp downturn today, with prices collapsing across major assets. Solana (SOL) led the declines, shedding significant value as panic spread through digital asset markets.
Market sentiment deteriorated further following Elon Musk’s abrupt resignation from a government advisory role. The tech billionaire’s departure added to existing macroeconomic worries after disappointing GDP figures.
Solana Whale Transfer Sparks Sell-Off Concerns Amid Market Downturn
A dormant solana wallet transferred nearly 1 million SOL tokens worth $161 million, igniting fears of a strategic sell-off. The transaction, flagged by Whale Alert, moved 999,998 SOL to an active trading address after six months of inactivity.
Solana’s price dropped 6% to $158, erasing gains since May 5. Trading volume surged 36.53% to $4.47 billion, signaling potential capitulation. The whale activity compounds existing market fragility as cryptocurrencies face broad-based declines.
Market participants are monitoring for signs of reversal, though the timing suggests bearish momentum may persist. Large movements from dormant wallets often precede volatility, creating headwinds for SOL’s recovery.
Solana Whale Activity and Market Sentiment Signal Potential Downside
Solana faces mounting bearish pressure as large-scale transfers and derivatives data point to weakening confidence. Pump.fun has deposited an additional 156,425 SOL ($25.74 million) onto Kraken, bringing its total exits to 3.49 million SOL ($640 million+). These coordinated moves suggest a deliberate unwind strategy by institutional holders.
Market sentiment mirrors the technical breakdown. SOL’s price dropped 5.63% to $163.07, breaching its ascending trendline after rejection at $179 resistance. The Stochastic RSI hovering in oversold territory confirms weak momentum, with $140-$145 emerging as the next critical support zone.
Derivatives markets amplify the bearish narrative. Negative funding rates and $19 million in long liquidations reflect growing downside conviction. Both retail and institutional segments appear aligned in their caution, as measured by Market Prophit’s sentiment indicators.
Solana Price Prediction: SOL Drops to $154.40 Amid Market Volatility
Solana (SOL) extended its decline in early weekend trading, falling to $154.40—marking an 11.7% weekly drop. The downturn follows broader market turbulence triggered by a U.S. appeals court reinstating Trump-era tariffs, a decision that reversed an earlier International Trade Court ruling and rattled risk assets, including cryptocurrencies.
Technically, SOL has breached its critical $165.94 support level, exiting the bullish channel that had held since mid-April. The daily chart reveals a bearish Three Black Crows pattern, with the 50-day EMA at $159.60 flipping from support to resistance. MACD indicators show widening gaps and deepening red histograms, reinforcing the negative momentum.
Derivatives data reflects shifting sentiment: Coinglass reports a 3.23% drop in futures open interest to $7.11 billion, alongside $18.98 million in long liquidations versus just $464,750 in short liquidations—a clear unwinding of Leveraged positions.
