Solana Price Plummets 11% Following Massive Binance Withdrawals, Analyst Eyes $212 Resistance

Highlights:

• SOL drops 11% to $136 amid a 205% volume surge.
• Binance offloads 103,570 SOL (~$16.32M) amid massive withdrawals.
• Bearish indicators and a death cross signal further decline before an 11.2M SOL unlock.

The Solana Price has plummeted 11% in the last 24 hours to trade at $136 as of 2 a.m. EST on a 205% pump in trading volume to $10.3 billion. On-chain metrics indicate that Binance has facilitated millions of ETH and SOL withdrawals within the past 24 hours. Arkham Intelligence also records an acute spike in activity on both Binance’s Ethereum and Solana reserves in this period.

Of specific mention is the exchange’s hot wallet dumping at least 103,570 SOL—around $16.32 million worth—within hours. This surge came on the heels of almost an 8% decline in Solana’s price, with SOL currently trading at $157.58, its first time below $160 since October 2024. These events have generated wide-ranging debate among traders about their implications for the overall market.

INTEL: Market maker @wintermute_t has withdrawn a large amount of SOL from Binance in the past 4 hours pic.twitter.com/BeM6UTRWC2

— Solid Intel 📡 (@solidintel_x) February 24, 2025

Technical indicators are also signaling the continuation of this bearish trend. SOL is below its 50-day and 200-day moving averages, forming a “death cross,” signaling more price declines. Additionally, some analysts expect SOL to drop to between $109 and $120. Surmounting this is the imminent unlock of 11.2 million SOL worth $1.7 billion on March 1, 2025.

Although there is negative sentiment in the market, some indicators such as $77 million of exchanges outflows indicate that whales are possibly buying than selling for 53 seconds.

SOL Drops to Key Support Level – Rebound or Further Decline?

The SOL/USDT chart on the 1-day chart shows Solana at $136.57, down 3.70% for the day. The high was $144.45, and the low was $131.91, with key resistance levels at $212.61 and $261.92 on the LuxAlgo trendlines. A strong support level at $136.00 is also forming, which is consistent with a potential double-bottom formation, suggesting a potential bullish reversal.

The price action shows that SOL has been trending inside a bearish descending channel since early February 2025. Before the downtrend, the price had been trending in a parabolic manner, which made the price to rally very strongly to as much as $320 before the correction.

Now, with SOL testing the $136.00 support level, the level is the deciding factor for the next move of the price. If the support is held, the double-bottom pattern can set a reversal for the $212 – $261 area.

RSI Signals Oversold Conditions – Will Solana Price Bounce Back?

The Relative Strength Index (RSI) of 23.96 shows SOL is heavily oversold. Ideally, when RSI drops below 30, it indicates an opportunity to buy since the selling momentum is fading away. The signal line of RSI at 34.83 also indicates recovery could be possible if momentum switches to the upper side.

If SOL is able to stay above $136.00 and RSI starts showing an increase, a potential reversal can drive the price to the first major resistance at $212.61 and, if the bullish pressure continues, to $261.92. However, if the price goes below $136, further losses could drive the price towards the support areas of $120 – $110.

The chart shows SOL at a pivotal turning point with a good possibility of a reversal to the upside if buyers step in. However, confirmation through increasing buying volume and an RSI bounce above 30 would be a stronger signal for a move to the upside. The price action around the support level and consolidation could give the bulls the opportunity to drive the price up again.