While Solana’s token SOL has been sliding faster than a penguin on ice, whales are placing massive bearish bets through options contracts. Last week alone, block trades on Deribit hit $32.39 million – a whopping 25% of total options activity. What’s more telling? A staggering 80% of these trades were put contracts. Yikes.
The numbers paint a grim picture. SOL’s price has nosedived 46% to $160 in just over five weeks, marking its first dip below $170 since early November. The bears aren’t hibernating anymore – they’re having a feast. Despite the bearish sentiment, a bullish engulfing candle has emerged after a 2% surge, suggesting potential trend reversal. These market movements highlight the yield farming opportunities that traders are seeking in volatile conditions.
And just when you thought things couldn’t get more interesting, there’s an elephant-sized token release coming on March 1, with 11.2 million SOL tokens (worth about $2.07 billion) ready to flood the market.
Technical indicators are flashing more red lights than a traffic jam. The RSI’s sitting at 31, MACD’s showing red histograms, and the funding rate’s gone negative at -0.0023%. It’s like watching a slow-motion train wreck, except this train’s carrying digital assets.
Some whales are playing it smart, though. One mysterious player pulled 61,319 SOL ($12.4 million) from exchanges, while another whale, “GJwCU,” withdrew 30,901 SOL ($6.24 million). Classic move – staking tokens to reduce supply while the market throws a tantrum.
The timing couldn’t be more dramatic. Since the TRUMP token launch on January 17, Solana’s network activity has taken a nosedive. Daily transactions are down, DEX volumes are shrinking, and the liquidations are piling up – $26.25 million in just 24 hours, with $110 million wiped out in a week.
With FTX repayment drama, LIBRA memecoin controversies, and uncertain ETF prospects looming, Solana’s immediate future looks about as stable as a jenga tower in an earthquake. The real question isn’t if the whales are right – it’s how low this roller coaster might go.
