Solana’s 5% price drop occurred during low-liquidity overnight trading hours, with on-chain data showing large institutional wallets moving SOL to exchanges. The sell-off accelerated after SOL broke below the $172 support level, triggering automated stop-loss orders. High-volume transactions from whale accounts suggested coordinated profit-taking rather than retail investor activity.
The timing aligns with broader market weakness following Trump’s tariff announcements, but Solana’s steeper decline compared to Bitcoin indicates chain-specific factors. Some analysts speculate institutions may be rebalancing portfolios toward Bitcoin amid regulatory clarity concerns, as seen with Ledn’s shift to a Bitcoin-focused strategy.
Despite the drop, Solana’s ecosystem growth continues with network upgrades planned. Developers emphasize that short-term price action doesn’t reflect the chain’s technical improvements, though traders remain cautious about altcoin exposure during macroeconomic uncertainty.
