Solana Faces Bearish Pressure as Whale Sell-Off Impacts Market Sentiment

Solana (SOL) continues to struggle below the $164 resistance level following a significant whale sell-off that has cast a bearish shadow over the asset. As of June 5, 2025, SOL is trading at $156.4, with market participants closely monitoring the $143 support level for potential further declines or stabilization. The recent transaction by whale 'ZkSjmB,' who sold 44,539 SOL (worth $6.8 million) and realized $649,000 in profits, has heightened selling pressure and raised concerns among traders. This development underscores the volatility and sensitivity of Solana's price to large-scale movements, as the market weighs the potential for a deeper correction or a rebound. Analysts are now focusing on key technical levels and broader market trends to gauge Solana's next move, with the $143 support seen as a critical juncture for the asset's near-term trajectory.

Solana Price Continues to Struggle Below $164 Amid Whale Sell-Off

Solana (SOL) faces persistent resistance at $164 following a significant whale transaction that has injected bearish pressure into the market. The asset currently trades at $156.4 as of June 5, 2025, with traders scrutinizing key support at $143 for signs of further decline or stabilization.

Lookonchain data reveals whale 'ZkSjmB' sold 44,539 SOL ($6.8 million), realizing $649,000 in profits after accumulating the position at $139.4 a month ago. Such large-scale disposals often trigger cascading sell pressure, though some analysts interpret this as routine profit-taking rather than a structural bear signal.

Market participants are monitoring whether retail traders will emulate the whale's exit, potentially exacerbating downward momentum. The $143 support level now serves as a critical technical threshold—a breach could accelerate declines, while holding may set the stage for consolidation.

Pump.fun Eyes $1 Billion Raise at $4 Billion Valuation Amid Speculation of New Blockchain

Pump.fun, the memecoin launchpad that has generated over $700 million in revenue since its inception, is reportedly planning a $1 billion token sale at a $4 billion valuation. The fresh capital could fuel ambitions beyond its current Solana-based operations, including the potential development of a proprietary blockchain to capture trading fees currently flowing to Solana.

Helius CEO Mert Mumtaz dismissed the notion that a layer-1 blockchain WOULD be the sole focus, arguing that merely boosting profit margins would be a lackluster use of funds. "Raising a billion dollars just to increase margins from 80% to 85% is extremely boring," Mumtaz remarked during a Lightspeed podcast. Instead, he suggested the capital could de-risk moonshot initiatives to diversify Pump.fun's memecoin-dependent business model.

The platform's meteoric rise underscores the volatile yet lucrative nature of meme-driven crypto markets. While a proprietary blockchain remains speculative, the fundraising ambition signals Pump.fun's intent to evolve beyond its current niche.

Solana Price Prediction: SOL Struggles Under Selling Pressure, Can Bulls Hold the $128 Support?

Solana's price appears to be entering a consolidation phase following a robust rally. A significant whale recently unstaked and offloaded 44,539 SOL worth $6.8 million, securing a $649,000 profit. This strategic exit, executed below the $153 mark after initial staking at $139, signals calculated profit-taking rather than distress selling.

Market observers note this as an early indicator of potential rotation among large holders. While not yet a trend, such moves often precede broader shifts in capital allocation. Blockchain analytics from Lookonchain highlight the transaction's precision—timed after weeks of accumulation but before any significant pullback.

Artemis data reveals a concerning macro trend: Solana recorded the largest net outflows across all chains in the past 24 hours, while ethereum dominated inflows. This divergence suggests capital may be migrating toward Ethereum's ecosystem amid Solana's price uncertainty.

Solana Congestion Fix? Why Solaxy Could Be the DeFi Solution Investors Are Watching

Solana's rapid expansion has exposed critical performance bottlenecks. The network now handles over 4.9 million active users, with meme coin mania and protocol demand pushing its infrastructure to the brink. Unlike Ethereum's architecture, Solana's transaction routing through public RPCs creates systemic vulnerabilities when validator scheduling algorithms and priority fee structures become overwhelmed.

During traffic surges, failed transactions plague users. A narrow 60-90 second validity window compounds the issue, with many transactions expiring before block inclusion. The problem stems from multiple factors: bot-driven spam floods the network, fee markets operate suboptimally, and non-deterministic queueing creates unpredictable delays. Even transactions with premium fees face randomization across validator threads, undermining the economic incentives for priority processing.

QUIC protocol implementation introduces another LAYER of complexity. While designed for speed, its lack of traditional congestion controls becomes problematic when leaders implement spam defenses. Legitimate transactions become collateral damage in these filtering processes, creating user experience challenges during peak periods.