Solana drops 14.5% from ATH amid record whale activity

Solana (CRYPTO:SOL) has faced a notable price correction, pulling back 14.5% from its all-time high reached on January 19, 2025.

Despite this decline, the cryptocurrency has maintained a 16.7% gain over the past week, indicating some resilience in the market.

Technical indicators suggest that upward momentum is weakening, with the average directional index (ADX) dropping sharply from 66.2 to 27.2.

This decline in ADX indicates that while the trend remains strong, it is losing steam, which could affect future price movements.

The number of whale addresses holding significant amounts of SOL has reached record levels, peaking at 5,137 before slightly declining to 5,128.

This increase in whale activity suggests strong institutional confidence in Solana, even amid recent price fluctuations.

Tracking whale movements is critical for understanding potential price impacts, as these large holders can influence market sentiment and trends.

The current whale count has risen significantly from 5,054 just six days prior, reflecting ongoing accumulation by institutional investors.

However, investors should be cautious as concentrated holdings can lead to increased volatility if whales decide to move their assets.

In terms of support levels, critical price points are identified at $223, $211, and $191.85, which will be essential in determining Solana's next major price movement.

The current technical setup indicates that while selling pressure is increasing, buying pressure is decreasing, potentially leading to consolidation or a trend reversal.

As market participants analyse these dynamics, they will need to monitor Solana closely to assess whether it can maintain its upward trajectory or if further corrections are imminent.

At the time of reporting, the Solana (SOL) price was $250.38.