- Wintermute withdrew 20M SOL from Binance, reducing its holdings, but quickly repurchased 86K SOL from major exchanges.
- Solana’s active addresses dropped 60% from 18.5M to 7.3M, indicating weaker network engagement that could impact future prices.
- SOL trades below the lower Bollinger Band, with key support at $130. A break above $160 may hint at a reversal.
Solana (SOL) has had a sharp decline, dropping over 11% in the past 24 hours. The drop coincides with large scale SOL withdrawals from Binance by Wintermute, a leading market maker. Marty Party suggested that Solana has been pushed to extreme pain levels by Binance.
Solana $SOL is capitulated to max pain by @binance pic.twitter.com/OGyE984i22
— MartyParty (@martypartymusic) February 24, 2025
According to Arkham Intelligence, Wintermute withdrew 20 million SOL, valued at over $3 million, from Binance within 24 hours. This movement reduced its known holdings to 171,000 SOL, worth approximately $26.47 million.
The withdrawals occurred in different batches, with the largest single withdrawal involving 49,640 SOL sent to a Binance hot wallet. Additional withdrawals included 20,975 SOL, 13,374 SOL, 13,993 SOL, and 6,675 SOL.
These transfers come just days ahead of Solana’s upcoming $2-billion token unlock, scheduled for March 1. Over 11.2 million SOL tokens will enter circulation, potentially impacting market dynamics.
Wintermute’s Large SOL Transfers
Despite the initial outflows, Wintermute quickly repurchased a substantial amount of SOL from major exchanges, including Binance, Coinbase, Kraken, and Bitvavo. Within one hour of these transfers, the market maker acquired approximately 86,000 SOL, worth around $12.9 million.
Analyst Ali reported that Solana’s network activity has declined, dropping by 60% from its all time high of 18.5 million active addresses in October to just 7.3 million today. This reduction in active addresses suggests weakening user engagement, which could influence future price movements.
#Solana $SOL network activity has declined by 60%, dropping from an all-time high of 18.5 million active addresses in October to just 7.3 million today! pic.twitter.com/Ml8s23EnH8
— Ali (@ali_charts) February 25, 2025
Technical Indicators Show Bearish Momentum
On the daily timeframe, Solana is trading in a downward trend. At press time, SOL was priced at $139.779. The session recorded a high of $144.448 and a low of $131.902, indicating the ongoing volatility.
Bollinger Bands show a bearish outlook, with the upper band at $217.847, the middle band (SMA 20) at $181.773, and the lower band at $145.698. SOL is trading below the lower Bollinger Band, indicating strong bearish momentum.
Historically, price movements below this band either continue downward or experience short term rebounds. However, given the sustained decline, further losses appear likely unless buyers intervene with high volume purchases.
Support and Resistance Levels
The Accumulation/Distribution (A/D) indicator also confirms the ongoing sell off. With the A/D line declining, more traders are selling rather than accumulating SOL, aligning with the bearish trend. If selling pressure continues, SOL could test support at $130, with further declines toward $120 or even $100.
For a potential recovery, SOL must reclaim the $145-$150 range. A failure to break this level could reinforce the downward trend, while a close above $160 might indicate an early reversal.
