TLDR
- Solana (SOL) has dropped 13-15% over the past week, falling from around $180 to $153.53
- TD Sequential indicator on 12-hour chart has flashed a bullish buy signal after nine consecutive red candles
- On-chain data shows long-term holders are accumulating during the dip, with liveliness dropping to 0.76
- Positive funding rates at 0.0041% indicate bullish sentiment among futures traders
- Large whale moved 2.86 million SOL tokens ($441 million) to Binance exchange
Solana has experienced a sharp decline over the past week, falling 13-15% from recent highs near $180. The cryptocurrency now trades at approximately $153.53 as part of a broader market pullback affecting major altcoins.
Despite this downward movement, technical analysis suggests a potential reversal may be forming. The Tom Demark Sequential indicator on Solana’s 12-hour chart has recently completed a setup phase with nine consecutive red candles. This pattern typically signals a potential buying opportunity after a sustained downtrend.
#Solana $SOL looks ready to bounce with the TD Sequential flashing a buy signal on the 12-hour chart! pic.twitter.com/C3uVWwyZPj
— Ali (@ali_charts) June 1, 2025
The TD Sequential is a technical analysis tool that identifies potential reversal points through two phases: setup and countdown. During the setup phase, the indicator counts same-colored candles up to nine. When these candles are red, indicating a downtrend, the completion of nine candles generates a bullish reversal signal.
On-Chain Metrics Support Accumulation Theory
On-chain data provides additional context for Solana’s recent price action. The cryptocurrency’s liveliness metric has dropped to 0.76, marking its lowest level in the past 14 days. This decline suggests long-term holders are viewing the current price levels as attractive buying opportunities.
Liveliness measures the ratio of coin days destroyed to total coin days accumulated. When this metric decreases, it indicates that dormant coins are not being moved or sold. This pattern typically reflects accumulation behavior among long-term investors.
The funding rate for Solana futures has turned positive, currently sitting at 0.0041%. Positive funding rates occur when long position holders pay short position holders, indicating that more traders expect prices to rise. This metric suggests bullish sentiment persists among futures market participants.
Whale Activity Creates Mixed Signals
While technical and on-chain indicators point toward potential bullish momentum, recent whale activity presents a contrasting narrative. A large investor recently moved 2.86 million SOL tokens, valued at approximately $441 million, to the Binance exchange.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 2,866,265 #SOL (441,418,901 USD) transferred from unknown wallet to #Binancehttps://t.co/myjnCPaBbZ
— Whale Alert (@whale_alert) June 2, 2025
Large transfers to exchanges often precede selling activity, as investors typically move assets to centralized platforms when planning to liquidate positions. This whale movement could create selling pressure that might offset any technical buying signals.
The broader cryptocurrency market has experienced weakness in recent days, with most major altcoins declining alongside Bitcoin’s movement below key support levels. Solana’s performance has largely mirrored this market-wide correction.
Technical analysis suggests Solana could rebound toward $171.88 if current support levels hold and long-term holder accumulation continues. A break above this level might target the $195.55 resistance zone.
Conversely, increased selling pressure could push Solana down to $142.59 if bearish momentum intensifies. The cryptocurrency’s next moves will likely depend on broader market conditions and whether the current technical signals translate into actual buying interest.
Current price action shows Solana trading near $153.53 with the TD Sequential buy signal recently activated on the 12-hour timeframe.
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