TLDR
- Solana (SOL) dropped 3.27% to $171.07 on May 25, 2025, after briefly spiking above $181 due to Trump memecoin controversy
- Long liquidations reached $6.1 million across exchanges, with Binance accounting for $2.76 million in liquidations
- A whale withdrew $3.53 million worth of SOL from Binance and staked 19,875 SOL, showing long-term confidence
- SOL struggles to break past $193 resistance level with RSI cooling to 61.87 from previous highs
- Spot market outflows of $158.93 million exceeded inflows of $141.42 million, creating net selling pressure
Solana price dropped 3.27% to $171.07 on May 25, 2025. The decline came after SOL briefly spiked above $181 earlier in the weekend.
The volatility followed a politically charged event involving a Trump memecoin dinner on the Solana blockchain. This controversy caused market jitters and triggered a quick sell-off.
Despite the pullback, SOL remains up 7% for the week and 16.9% over the past 30 days. The token briefly overtook Binance Coin as the fifth largest cryptocurrency before retreating.
A newly created wallet withdrew 20,009 SOL worth $3.53 million from Binance. The wallet immediately staked 19,875 SOL and sent 134 SOL to another staking address.
This brought the wallet’s total staked holdings to 9,270.4 SOL, equivalent to $1.6 million. The heavy staking activity shows long-term conviction from large holders.
However, market reaction to this whale activity has remained subdued. Broader market signals have not aligned to support a strong upward trend.
Long Liquidations Surge Across Exchanges
Long liquidations reached $6.1 million across major exchanges on May 25. This dwarfed the $326,000 in short liquidations during the same period.
Binance alone accounted for $2.76 million in long liquidations. The stark imbalance reflects the market punishing overleveraged bullish traders.
This liquidation pattern often signals cooling market conditions or potential reversals. The data shows caution is needed for traders still heavily positioned long.
Despite the heavy liquidations, 68.95% of traders on Binance held long positions in SOL. The long-to-short ratio stood at 2.22.
This shows most retail traders remain optimistic even after the liquidation wave. However, such lopsided sentiment often precedes further volatility.
Technical Resistance Holds Firm
SOL traded at $172.34 at press time, still struggling to break past the 0.786 Fibonacci resistance at $193. Despite recent rebounds, momentum has stalled.
The Relative Strength Index cooled to 61.87 from previous highs. This level shows mild bullish control but not strong enough to confirm a breakout.
For bulls, reclaiming $193 is essential to target the next Fibonacci zone at $229.46. Repeated failures at this level could reinforce range-bound trading.
SOL broke below its mid-term ascending channel and the 50-period exponential moving average at $174.56. The MACD shows a bearish crossover with widening histogram.
Price is testing immediate support at $173.06. A break below this level could target $165.50, then $159.57 and $153.94.
Spot market flows on May 25 revealed $158.93 million in outflows compared to $141.42 million in inflows. This created a net outflow despite whale staking activity.
The divergence suggests that while some whales are accumulating, broader market participants continue exiting positions. Short-term price structure remains pressured by ongoing profit-taking.
