SOL Caught Between Selling and Institutional Buying—What's Next?

Solana is experiencing a significant pullback today, with prices sliding from recent highs near $186.80 down to the $174–$175 zone. The current trading level sits at $122.26, reflecting a broader market correction. The shift from positive to negative momentum has been swift, with sell-off signals dominating short-term charts as traders take profits across the board.

Whale and Institutional Activity Paints a Mixed Picture

The data reveals an interesting tension in the market. Large holders have been aggressive on the selling side—over 146K SOL moved out of whale wallets in just two hours, with cumulative net outflows reaching 162K SOL. This suggests that major players are locking in gains, which typically signals profit-taking at resistance levels.

However, the picture isn’t entirely bearish. Whale accumulation is already starting to resurface, with one major address recently purchasing 71K SOL (approximately $12M) and immediately staking it through Kamino, a Solana-based protocol. This reversal in buying behavior hints that some insiders view current levels as attractive entry points.

Institutional inflows have been particularly noteworthy, with roughly $137M in ETF capital flowing into Solana since mid-July. Simultaneously, Solana’s Total Value Locked (TVL) has reached a three-year peak when measured in SOL terms, indicating growing ecosystem activity despite price volatility. Interestingly, some institutions like Galaxy Digital are still unstaking positions to capitalize on gains, showing that not all big players are convinced of near-term strength.

Technical Landscape: Support Zones and Recovery Targets

The $175 level has emerged as the critical support floor to monitor. If this floor holds and buyers regain control, the price could rebound toward $181–$183. Breaking through $178 with substantial volume could propel SOL toward $189 or potentially test the $200 psychological level.

On the flip side, if $174 gives way, additional selling pressure could materialize, deepening bearish momentum. Red candles used for technical analysis help traders identify these sell-off phases, and their persistence suggests bears remain in charge of the short-term narrative.

Network Fundamentals Remain Solid

Despite price turbulence, Solana’s on-chain metrics tell a different story. Transaction throughput continues to set records, and network activity remains robust. The combination of elevated TVL, institutional inflows, and strong technical infrastructure suggests the foundation remains sound beneath the surface volatility.

Trading Playbook for Different Market Participants

For those holding positions, the advice is straightforward: avoid panic selling near support levels and wait for evidence of a genuine reversal before adding exposure. Buyers should exercise patience and wait for clear signs of trend change, not jumping in at every dip. Active traders managing short positions should keep tight stop-loss orders positioned just below $174 to limit downside risk.

The broader case for Solana rests on its strengthening fundamentals and steady institutional interest. If market sentiment reverses—which is possible given the accumulation patterns emerging at lower levels—SOL could stage a sharp rebound that catches many bearish traders off guard. Until then, trading near support and resistance zones with disciplined risk management remains the prudent approach.