The SOL whale unexpectedly initiates a large sell order: warning signs behind the growth

Recently, a whale with an excellent trading history initiated a sell order totaling up to $28 million in SOL, using 20x leverage. This action occurred amid positive developments and praise for SOL’s growth signals. However, a closer look at market data reveals a much more complex picture.

The Complex Reality Behind Institutional Flows

On the surface, SOL’s development story seems promising: institutional funds are pouring in with $2.4 million, the Real-World Assets (RWA) sector is booming with a 58.7% increase, surpassing $1.1 billion. Even the European Central Bank is considering using Solana to develop a digital euro, signaling recognition from major financial institutions.

All these signs initially suggest a success story similar to Ethereum’s. However, behind these impressive numbers lies a concerning truth: large investors are not driven by confidence in SOL’s long-term prospects but are simply seeking profit opportunities. When better targets emerge or market sentiment shifts, these whales can withdraw from the market faster than retail investors.

Technical Analysis: Three Weaknesses Investors Should Watch

Current technical indicators highlight three clear issues. First, all EMA 7 cycles indicate a downtrend; MACD continues to signal strong bearish momentum; and the price is very close to the lower band of the Bollinger Bands. These signs reflect heavy selling pressure in the market.

Second, yesterday, $23 million was withdrawn from the market within one hour, with 67% of that from large transactions. This indicates that smart money is rapidly exiting, while retail investors continue to participate, creating an imbalance in market behavior.

Third, the presence of institutional capital is a double-edged sword. These funds are not based on long-term trust but aim to amplify short-term gains. Their loyalty to an asset lasts only until it ceases to be profitable, making market volatility more intense.

Current Price Evaluation and Technical Targets

At the current SOL price of $87.55 (as of 04:06 on February 27, 2026), down 0.76% in 24 hours, technical analysis suggests this may not be the bottom of the correction. Instead, it could be just the middle point of a deeper decline.

Important support levels to watch are $79.5 for near-term support and $76.8 for stronger support. If SOL continues to fall below these levels, it indicates that selling pressure remains dominant.

Trading Strategy with Cautious Risk Management

Short-term traders might consider a potential rebound opportunity. If the price stabilizes near $79.5 and confirms support, traders could initiate a small long position, targeting resistance levels at $82.5 and higher at $85.5.

However, risk management is crucial. If the price continues to drop below $79 without confirming support, the safest strategy is to cut losses and exit immediately. The next support level to monitor is $76.8, where whales may continue to sell.

Final Remarks

SOL has genuine long-term value, but that value may not be reflected at the current price. The appearance of a large sell whale, combined with weak technical signals and smart money withdrawing, suggests investors should exercise caution. Whether you’re a Solana enthusiast or a opportunistic trader, prudence is key in this uncertain market environment.