Whale Selling and Security Concerns Challenge Solana's Institutional Stability

Solana (SOL) has recently approached important support zones as investors watch for signs of short-term fatigue after a period of sharp price swings. Over the past day, SOL slipped 0.9% to $213.09, lagging behind the overall crypto market’s 1.18% drop. The decline was influenced by technical barriers, large holder movements, and a security breach that weighed on retail confidence Latest Solana (SOL) Price Analysis - CoinMarketCap [ 1 ]. Despite the recent dip, SOL remains above its 20-day EMA ($206.51), indicating a possible recovery if buyers defend the $206.33 support area Latest Solana (SOL) Price Analysis - CoinMarketCap [ 1 ].

Technical signals point to ongoing bearish pressure.

was unable to sustain a move above the 23.6% Fibonacci retracement ($207.42), as the MACD histogram turned negative (-0.077) and the RSI eased to 59.61 from overbought levels Latest Solana (SOL) Price Analysis - CoinMarketCap [ 1 ]. This indicates a period of consolidation, with the next significant support at the 38.2% Fibonacci level ($200.97). If SOL falls below $206.51, it could revisit the psychological $200 mark, while a daily close above $212.27 would challenge the current bearish outlook Latest Solana (SOL) Price Analysis - CoinMarketCap [ 1 ].

Large holder transactions have added to the short-term selling pressure. According to Lookonchain, whales transferred 96,996 SOL (worth $17.45M) to exchanges such as Kraken and Binance on September 8, following a $41M transfer by Galaxy Digital the week before Latest Solana (SOL) Price Analysis - CoinMarketCap [ 1 ]. This influx of tokens to trading platforms increased selling activity, leading to a 2.58% drop in 24-hour trading volume to $9.09B. Similar whale sell-offs preceded a 12% price drop in July, when $57M worth of SOL was offloaded Latest Solana (SOL) Price Analysis - CoinMarketCap [ 1 ].

On the institutional front, positive developments continue to support the bullish case. The completion of Solana’s Alpenglow consensus update on September 8 improved transaction finality to 150ms, helping to resolve past congestion problems and strengthening the network’s technical foundation Latest Solana (SOL) Price Analysis - CoinMarketCap [ 1 ]. Additionally, SOL Strategies received approval from Nasdaq, marking a step toward institutional adoption similar to

ETF progress Latest Solana (SOL) Price Analysis - CoinMarketCap [ 1 ]. Although VanEck’s SOL ETF is still awaiting SEC approval, the ecosystem has generated $1.6B in quarterly app revenue and now boasts over 3,200 active developers, reflecting robust demand Latest Solana (SOL) Price Analysis - CoinMarketCap [ 1 ].

Short-term risks remain due to security incidents. In early September, a $185K scam targeting

wallets impacted more than 1,200 users, temporarily shaking retail trust Latest Solana (SOL) Price Analysis - CoinMarketCap [ 1 ]. While the financial impact is small compared to Solana’s $115B market value, it exposes ongoing vulnerabilities. Blockchain data shows $2.5B has exited Solana DeFi since July, though this has been partly balanced by institutional purchases such as DeFi Dev Corp’s $2.7M SOL acquisition Latest Solana (SOL) Price Analysis - CoinMarketCap [ 1 ].

Looking forward, holding above $206.33 will be crucial for Solana’s short-term outlook. A move above $212.27 could reignite bullish sentiment, while a drop below $200.97 may lead to further declines. Analysts point out that the RSI’s current neutral reading (47) and mixed MACD signals could set the stage for a golden cross if the 50-day EMA overtakes the 200-day EMA.