Solana (SOL) is poised to extend its downside move, with the key factors driving this bearish outlook being massive whale deposits worth $39.37 million, rising geopolitical tensions, and traders’ bearish bets.
As U.S.- Israel-Iran tensions rose, Solana (SOL) witnessed renewed selling pressure amid a notable deposit on the exchange. Following these developments, the asset's price also bled 2.15% over the past 24 hours and trades at the $104.45 level.
This 2.15% fall from the resistance level hints at a potential downside move, further fueling fears of more pain in the coming days
Recently, a crypto transaction tracker, Lookonchain, reported that a crypto wallet address “HoYd72” dumped a massive 240,000 SOL worth $25.30 million into Binance, OKX, and Bybit over the past 24 hours. Meanwhile, Pump.fun, a crypto launchpad, also offloaded 129,798 SOL worth $14.07 million into Kraken, a cryptocurrency exchange.
This notable deposit surfaced as tensions between the U.S., Israel, and Iran rise. Recently, a video on X went viral in which reporters asked U.S. President Trump about negotiations with Iran, to which Trump responded,
“No, I think we’re not negotiating.”
He further added,
“We are going to have something one way or the other that’ll happen fairly soon. Most people seem to think it’s after the election, and we’re going to see what happens.”
This is now garnering widespread attention. In fact, it also raises questions about whether Trump is signaling a potential strike on Iran before the midterm elections or simply making a routine statement.
However, it is also worth noting that following this development, Iranian media shared a post on X, stating that any attack, whether it's joint or separate by the U.S. or Israel, will be treated as an all-out war.
The post further added that this warning comes as Netanyahu reportedly continues pushing for a strike on Iran’s military and nuclear infrastructure before Israel’s October 27 election.
These developments have not only turned whale sentiment negative, but intraday traders also appear to be strongly betting on short positions. CoinGlass’s SOL exchange liquidation map reveals that $103 on the lower side and $106.60 on the upper side are the two major liquidation levels.
These levels hold a massive $47.75 million worth of long positions and $106.45 million worth of short positions. This imbalance suggests seller dominance while bulls appear to be exhausted at the moment.
As per TradingView’s daily chart, Solana’s short-term bias appears negative and is poised to extend its downside move. On the chart, it was evident that SOL rejected at $109 before today’s 2.15% fall, reinforcing the asset’s bearish outlook.
Based on the current price action, if the Solana (SOL) price remains below the $109 level, its bearish outlook will remain intact. In this scenario, the asset could decline another 7.60%, potentially reaching the next support level at $96.50.
On the other hand, if market sentiment shifts and SOL reclaims the $109 level, the bearish outlook could be invalidated, potentially paving the way for a strong price recovery.
At press time, SOL’s Chaikin Money Flow (CMF) has turned negative and reads -0.01, indicating slight capital outflows and growing selling pressure in the market.
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