Solana, searching for a $130 bottom—what large investors' fund movements suggest

Solana (SOL) has fallen below $130, reflecting a shift in market conditions. According to the latest data, SOL is currently trading around $138.30, showing a 2.89% increase over the past 24 hours, but from a broader perspective, it is in a correction phase. Behind this price movement are not only technical pressures but also a change in large investors’ capital allocation strategies.

Market Sentiment Worsens and Altcoin Exit

In the current market environment, interest in altcoins in general is waning, and even funds are flowing out of major projects like Solana. As a leading layer 1 blockchain that has been active for years, Solana’s ecosystem development alone is no longer enough to support the market.

Multiple factors are acting simultaneously. Even with the Federal Reserve’s (FRB) rate cut announcement, the market has not formed a clear bullish scenario. Amid such uncertainty, conservative investment decisions are becoming more prevalent. While Solana’s trading volume remains relatively stable, the balance between bid and ask prices is beginning to break down, and a wait-and-see mood is prevailing.

Whale Capital Flows and Inflows into Emerging Meme Coins

Notably, there is a change in behavior among large investors (so-called whales). Some institutional and macro investors who held large amounts of SOL are beginning to adjust their positions. Reports indicate that whales have sold approximately $17.7 million worth of SOL, with some of these funds flowing into emerging meme coins currently in pre-sale stages.

The reasons for meme coins attracting attention are clear: low entry prices, early participation advantages, and active community formation—all appealing to short-term traders. While Solana remains in a consolidation phase, these new projects are starting to serve as speculative targets for large investors seeking high volatility.

SOL’s Technical Foundation Remains Unchanged

It is important to understand the nuance here. The outflow of whale funds from Solana does not mean a loss of network value itself. Rather, it is simply an optimization of capital in response to short-term market fluctuations.

The Solana ecosystem remains robust. It features diverse layers such as DeFi, NFTs, and meme coins, with trading volumes remaining stable. The Alpenglow upgrade has reduced finality to 150 milliseconds, enhancing suitability for high-frequency trading. Additionally, there is a 95% chance (by the end of December 2025) that the SEC will consider approving a staking ETF, providing a favorable institutional environment.

Short-term Fluctuations and Long-term Trends

In the current price decline, technical indicators like RSI are around 36, indicating an oversold condition. The next key price range to watch is between $150 and $176.

The temporary capital movement by large investors reflects a deterioration in overall market sentiment and does not suggest Solana’s decline. On the contrary, whales sensing opportunities are shifting their focus to other high-growth projects—this is evidence that market mechanisms are functioning properly.

What will influence Solana’s future market is the timing of market sentiment recovery and the progress of institutional approvals (such as ETF approvals). While short-term adjustments may continue, the long-term resilience of the network will underpin the market.