As the crypto markets are heading towards the monthly close, the volatility has squeezed to a large extent. While the Bitcoin price is juggling around $59,000, the other popular tokens like Solana have been facing constant bearish heat. With this, the token has dropped below the crucial range, flashing bearish signals. Moreover, a bearish close for the month may validate the crypto winter, which could drag the SOL price to $125.
In the past few days, the whales have been extremely vigilant over the SOL price rally, as they do not appear confident about the next price action. Ever since the price was rejected from $161, the token has been printing massive bearish candles, which could have compelled the whales to unstake the staked SOL tokens. As per a popular on-chain data provider, Lookonchain, a whale has withdrawn close to 140,000 SOL tokens.
As per the data, the whales unstaked nearly $19.5 million worth of tokens a few days ago and deposited in the exchange with a loss of $5.5 million. Earlier, the whale had withdrawn a similar amount of tokens when the price was around $180 and hence depositing back into the exchange may validate bearish flags over the token. It could suggest the whale may be preparing to sell the token, which may generate huge selling pressure over the token very soon.
Now that the markets are entering the last few weeks of the quarter, the volatility is expected to rise, which may harm the rally to a large extent.
The weekly trade suggests the SOL price is failing to hold the crucial ascending trend line, which has been acting as a strong support since the beginning. However, the weekly RSI has been stuck under a huge bearish influence, heading to the lower threshold. Besides, the MACD suggests a growth in the selling pressure after the bulls tried to regain their dominance in the past week.
The Solana (SOL) price has dropped below the resistance and with the growth in the selling pressure, the token is likely to hit the lower support zone between $125 and $121. Historically, September has been the month of bears and hence there are higher possibility of achieving these levels before the end of the quarter.