$201M SOL Sell-Off Sparks More Fear: Can Solana Hold Above the $130 Support Zone?

Solana (SOL) is underneath intense market strain after an enormous $201 million token switch on November 17 sparked considerations about additional losses.

While institutional curiosity in Solana-based ETFs stays robust, technical indicators level to a fragile market construction that would ship SOL towards the $125–$120 area if patrons fail to regain momentum.

$201M Dump Raises Alarms as Solana Extends Downtrend

Forward Industries, Solana’s largest company holder, moved 1.44 million SOL, price roughly $201.34 million, to Coinbase Prime earlier this week, based on Onchain Lens. The switch triggered hypothesis of an impending main sell-off, particularly as Solana has already declined almost 50% over the previous two months.

Although it stays unclear whether or not the tokens had been bought or repositioned, the market response was swift. SOL briefly dipped to $128 earlier than recovering to the $137 vary. Trading quantity, nonetheless, has declined by 38% to $5.65 billion, indicating elevated dealer anxiousness and aggressive repositioning.

Technically, SOL stays in a confirmed downtrend after dropping the important $155 help degree. Indicators akin to the Chaikin Money Flow (CMF) at -0.18 and a bearish Supertrend sign present persistent promoting strain.

If the value stays beneath the present consolidation zone, analysts warn of a possible 16% drop, inserting $120 firmly in sight.

Institutional Inflows Persist Despite Price Weakness

The irony in Solana’s present scenario is hanging. Despite a weekly drop of 11%, institutional confidence is slowly choosing up tempo. Solana ETFs have quickly expanded throughout main U.S. exchanges, with Fidelity, Canary, VanEck, 21Shares, and Bitwise all launching new SOL merchandise in latest days.

Fidelity’s $FSOL recorded $2.07 million in day-one inflows, whereas whole web inflows throughout all U.S. Solana ETFs have soared to $420.4 million. Meanwhile, November 18 marked the fifteenth consecutive day of optimistic ETF inflows, totaling $26.2 million, led by Bitwise’s BSOL.

This displays a deeper narrative: institutional traders see Solana’s long-term fundamentals, pace, developer exercise, and staking yields as compelling regardless of short-term volatility.

Key Levels: Can SOL Hold Above $130?

Analysts now spotlight $125 and $120 as the most crucial help zones. A failure to defend $130 might speed up losses towards $120, with a deeper flooring at $115. Conversely, a reclaim of $145, and ideally $160, would sign the first significant reversal in weeks.

For now, Solana sits at a crossroads. Heavy promoting strain on one aspect, surging institutional conviction on the different. The subsequent few days could decide whether or not SOL stabilizes or slides deeper into bearish territory.

Cover picture from ChatGPT, SOLUSD chart from Tradingview