Solana’s price decline from highs near $230 to roughly $195 between October 7 and 14 has dampened confidence among some of its major holders.
On-chain data shows that over the past week, SOL has seen a significant drop in the number of perpetual futures positions held by its key investors, raising the risk of further downward pressure on the coin in the near term.
SOL Sentiment Turns Cautious as Large Holders Step Back
According to Nansen, whales trading Solana perpetual futures have reduced their net positions by 103% over the past week. This signals that some of the market’s largest players are closing out positions rather than doubling down.
For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
Solana Whale Activity. Source: Nansen
Per the data provider, these are large investors holding coins worth more than $1 million. Reducing their net positions like this signals weakening confidence and can pressure the market, as their activity often influences smaller holders.
Moreover, the top 100 Solana addresses have reduced their perpetual futures exposure, with positions falling 70.07% over the past week.
This decline highlights a shift in sentiment among major players, who appear to be scaling back risk following the coin’s volatile price swings and last weekend’s broader market liquidation event.
These trends suggest that SOL large holders and high-value traders are exercising caution amid fading bullish momentum in the cryptocurrency market.
SOL Sellers Gain Momentum on Daily Chart
On the daily chart, SOL’s negative Balance of Power supports this bearish outlook. As of this writing, the momentum indicator is in a downtrend at -0.65.
The BoP indicator measures the strength of buyers versus sellers in the market, helping to identify momentum shifts. When its value is positive, buyers dominate the market over sellers and drive newer price gains.
Conversely, negative BoP readings signal that sellers dominate the market and are pushing prices downward.
If SOL sellers gain more strength, they could trigger a dip below the $195 price level toward $171.88.
SOL Price Analysis. Source: TradingView
Conversely, renewed buyer interest could stabilize the SOL market and trigger a rebound to $219.21.
