Why are Solana Whales Going Long Even After a 40% Price Drop?

Overview:

• Solana (SOL) whales bought 121,368 SOL worth $10.26 million during the 40% price drop, signaling strong confidence.

• On-chain analytics platforms show an increase in large wallet accumulation and steady network activity despite market weakness.

• Exchange outflows and institutional inflows suggest reduced selling pressure and long-term positioning.

Solana (SOL) has dropped close to 40% from its recent highs. The fall followed a strong rally earlier in the year, when prices climbed quickly and attracted heavy trading. After reaching these highs, the market turned lower as traders booked profits and overall crypto sentiment cooled.

A drop of this scale usually creates fear in the market. While short-term investors may sell to avoid more losses, whales have reacted differently. Several large holders have started building bigger positions.

Clear Signs of Whale Buying

Recent on-chain data shows strong buying from large wallets during the decline. A major whale purchased 121,368 SOL, worth about $10.26 million. It was a large and deliberate move that signaled confidence at current price levels.

This activity suggests that certain big players see value after the correction. Whales usually have access to deep research, advanced tools, and long-term strategies. Their actions focus on future potential rather than short-term price swings. When large holders buy during weakness, it can reduce selling pressure. 

Oversold Signals and Market Setup

Technical indicators also help explain this behavior. During the recent decline, momentum indicators such as the Relative Strength Index (RSI) moved into oversold territory on several time frames. Oversold conditions usually appear when selling becomes extreme.

Additionally, some charts showed bullish divergence. This happens when the price makes lower lows while momentum indicators begin rising. Traders sometimes view this pattern as an early signal of slowing selling pressure.

On-chain analytics platforms reported that large wallets have been increasing their holdings during this downturn. At the same time, new wallet creation on the Solana network is also on the rise. Even though the price has dropped, network usage has not collapsed. This balance between price weakness and steady activity can attract strategic buyers.

Also Read - Why Solana (SOL) Might be Set for a $100 Short Squeeze in 2026

Exchange Flows and Supply Changes

Another important factor is exchange flow data. Recent figures show periods of net outflows from exchanges. When coins leave exchanges, they are usually placed in cold storage or long-term wallets. This lowers the supply of tokens available for immediate selling and supports prices over time if demand returns. Whales usually monitor these patterns closely. Reduced liquidity during a correction may offer an attractive setup for long-term accumulation.

Institutional Interest and Spot Products

Institutional interest also plays a role. Spot investment products tied to SOL, including exchange-traded funds and structured investment vehicles in certain markets, have recorded inflows. These products allow traditional investors to gain exposure without directly holding the token.

Inflows into such products signal that professional capital is still interested in Solana’s ecosystem. Even during price weakness, structured products attracted fresh money. Large holders may view this as a sign that broader demand could return once market conditions improve.

Institutional flows usually move more slowly than retail sentiment. While retail traders may react quickly to price drops, funds and large allocators scale into positions over time.

Confidence in Long-Term Fundamentals

Beyond short-term price moves, Solana’s core fundamentals are a key reason for whale confidence. The network supports decentralized finance, NFT projects, gaming platforms, and payment applications. Quick transaction speeds and low fees are beneficial compared to some competitors.

Development activity stays active, and the ecosystem expands over time. Large investors may believe that the recent drop suggests temporary market fear rather than a real structural weakness in the network.

A 40% correction in crypto markets is not unusual. Historically, strong assets have experienced deep pullbacks before continuing their longer-term trends. Whales may view this moment as part of a normal cycle rather than the start of a lasting decline.

Also Read - Solana Price Alert: Panic in Futures, Will $80 Break?

Risk Still Remains

Investing in Solana is considered risky despite these positive signals. Broader macroeconomic uncertainty, shifts in global liquidity, or negative regulatory news could pressure prices further. If overall crypto sentiment turns negative, even strong networks can face extended downturns.

However, whale behavior suggests that some major players are positioning for recovery rather than collapse. The combination of large purchases, oversold technical signals, exchange outflows, and continued institutional inflows create a setup that is attractive to long-term investors.

In simple terms, while price has fallen sharply, large capitals appear to be betting on Solana’s long-term value. Whales are using it as an opportunity to build positions at lower levels instead of leaving the crypto market during the crash.

FAQs

Why are Solana whales buying after a 40% drop?

Large holders often accumulate during sharp corrections to lower their average cost and prepare for future upside.

How much SOL did the whale purchase?

A major whale bought 121,368 SOL valued at approximately $10.26 million during the decline.

What do on-chain analytics platforms show?

Data indicates increasing accumulation by large wallets and continued wallet growth on the network.

Are institutions still interested in Solana?

Yes, spot investment products linked to SOL have recorded inflows, showing ongoing professional interest.

Does whale buying guarantee a price recovery?

No, it signals confidence, but broader market conditions and macro factors still influence price direction.