Solana Price Prediction- Whale Dumps $17M SOL After Record $57M Long Squeeze As Crash to $120 Looks Imminent

Solana price trades at $163 today, August 2, with a 2.86% drop in 24 hours. Whales are now selling, fuelling the possibility of further dips. With longs taking the brunt, a fall to $120 is a real possibility, especially now that a bearish structure is emerging.

Solana Price Faces Crash to $120 Amid Bearish Rounding Top

Solana has been dropping for the last seven days. This crash has brought its seven-day drop to 12%. Bears have been dumping their tokens without much of a rush. Because of this, the drop has been gradual and created a rounding top.

When there is a sudden spike in selling, one would expect Solana price to rebound quickly. That is because there will be uncollected liquidity that traders will begin to hunt. But now, there is no chance of this happening. The fall has not left any gap that bulls might exploit.

From the peak of $206 to support at $159 is a 22% fall. This drop will be replicated again when the SOL price falls under $159. It is only a 2.45% decline from today’s price. Considering that weekend swings are often unkind to bulls, losing this support might happen this weekend.

In this case, it is possible for the Solana price to reach $120. Most likely, August might not end without SOL touching this price. This will likely be the case if bears tighten their grip on the market like they are doing now.

Nevertheless, this Solana price forecast does not lack an invalidation. The AO bars are turning green even if they remain negative. Oftentimes, this indicates that sellers are getting tired. However, this will only be confirmed if these bars move above zero.

Whale Dumps $17M SOL Amid Record Long Squeeze

As the crypto market tumbles, longs and whales have been dealt the biggest blow. Longs are already taking a beating after they were forced to wind down more than $57M in positions. Coinglass data shows that this was the highest record set since early February.

In as much as longs are bullish traders, being squeezed out is bad for the price. It means that there is forced selling that, in turn, favors bears or those with short positions.

The benefit of this long squeeze is going to shorts who are doubling down on the Solana price dropping. That is after the funding rate turned negative. These shorts are willing to pay more just so that they can keep their positions open.

Lastly, whales are adding to the selling pressure. Lookonchain notes the activity of one whale that has moved 108,016 SOL, worth $17.7 million, to two exchanges: OKX and Binance. When whales are panicking, it is a bad sign for the SOL price.

In summary, Solana price might be down by 12% in one week, but it is still not out of the woods. There is no sign of a correction happening because the drop has been gradual. Therefore, getting to $120, especially with whale selling and long liquidations, is possible.