Solana (SOL) Remains Bearish As TVL and Whale Activity Shows Cautious Sentiment

Solana (SOL) has been under pressure, struggling to remain above the $130 mark for the past seven days. Over the last 30 days, SOL has corrected by nearly 36%, reflecting broader market weakness.

The continued decline is being driven by Solana’s Total Value Locked (TVL) and whale activity, which show mixed signals. As SOL trades within a tight range, investors are closely watching key support and resistance levels to gauge where the next major move could unfold.

Solana TVL Struggles Below $9 Billion

Solana’s Total Value Locked (TVL) is $8.57 billion, having remained below the $10 billion mark since February 23.

This recent trend highlights a period of constrained capital flow into the Solana ecosystem, suggesting that investors and protocols are adopting a more cautious stance.

Despite this, Solana continues to retain a significant share of the decentralized finance (DeFi) market, but the sub-$10 billion range reflects broader market sentiment and risk appetite within the ecosystem.

Solana TVL. Source: DeFiLlama.

TVL, or Total Value Locked, measures the amount of capital deposited across a blockchain’s DeFi protocols, including lending, staking, liquidity pools, and other smart contract-based applications.

It is a key metric for gauging the health and activity within a blockchain ecosystem, as higher TVL generally reflects strong user participation, liquidity, and developer confidence.

Solana’s TVL reached an all-time high of $14.24 billion on January 18 but has since been in a steady decline, mirroring a more cautious market posture.

While TVL remains relatively low, it has shown signs of stabilization and a slight recovery, bouncing from a recent low of $8.11 billion on March 10 to its current level, signaling a potential shift in market sentiment.

Whales Are Buying SOL Again

The number of Solana whales – addresses holding at least 10,000 SOL – is currently at 5,031, a slight increase from 5,008 just two days ago.

However, this figure remains below the 5,053 level observed on March 3, suggesting that while some accumulation is happening, the whale count has yet to recover from its recent highs fully.

This fluctuation in large holders indicates a market still in transition as key players reassess their positions within the Solana ecosystem.

Solana Whales. Source: Glassnode.

Monitoring the number of whales is crucial because these large holders often have the ability to influence the market through significant buying or selling activity.

A rising whale count can signal increased confidence among sophisticated investors, potentially leading to more price stability or upward momentum. With the current whale figure climbing to 5,031, this modest uptick could be an early sign of renewed interest from major players, supporting the idea of gradual accumulation.

However, the number remaining below recent peaks suggests that while sentiment may be improving, some larger investors are still cautious, which could limit immediate upside pressure on SOL’s price.

Can Solana Fall To $112 Soon?

Solana price is currently trading within a range, finding support at $120.76 and facing resistance at $131.

With the market showing signs of a downtrend, there is a risk that SOL could retest the $120.76 support level.

Should this level fail to hold, the price could potentially decline further toward the next key support at $112, signaling a deeper correction within the current bearish momentum.

SOL Price Analysis. Source: TradingView.

However, if SOL manages to regain positive momentum, it could challenge the immediate resistance at $131.

A successful breakout above this level could open the door for a move toward $152.9, with a further push to $179.85 if bullish sentiment strengthens significantly.

The current consolidation between $120.76 and $131 will be critical in determining whether SOL continues its downward pressure or transitions into a sustained uptrend.