Solana Crashes to Pre-Election Lows Amid Binance, Kraken SOL Selloff Rumors

As of Feb. 24, Solana (SOL) had plunged to $157.25—its lowest level since early November, effectively wiping out the 90%-plus gains made after Donald Trump’s reelection. Market watchers are now pointing to a mix of Binance selloff rumors, broader market dynamics, and Solana-specific challenges as the culprits behind the decline.

Let’s examine these factors in detail.

Binance, Kraken Transfer Over $3.5M in SOL to Wintermule

Rumors of a massive selloff by top exchanges Binance and Kraken have fueled much of the downside speculation recently.

Analyst Crypto Rover said on X that Binance and Kraken—two of the world’s largest crypto exchanges—may have offloaded $3.5 million worth of SOL tokens alongside Bitcoin and Ethereum, to market maker Wintermule, contributing to the crypto market downturn.

💥BREAKING:

Binance has been selling huge amounts of $SOL in the last 4 hours through market maker Wintermute.

THEY KNOW SOMETHING… pic.twitter.com/DmmVcas0xi

— Crypto Rover (@rovercrc) February 24, 2025

Adding to the intrigue, analyst Mintern argues that these large SOL transfers signal manipulation.

What numbers did #Binance hit? https://t.co/VoRGYncQTQ

— MartyParty (@martypartymusic) February 24, 2025

Massive SOL Token Unlock Ahead

Binance’s recent Solana movements may be linked to the upcoming token unlock event scheduled for March 1, 2025. On that date, approximately 11.16 million SOL, valued at around $1.79 billion, will be released, primarily from the FTX estate.

This event has fueled what some analysts call “peak FUD” (fear, uncertainty, and doubt) within the Solana ecosystem as concerns mount over the potential market impact.

tbh rn is a pullback across crypto following equities flush after German election results and Zelensky hinting he won’t hold elections…

Solana is facing peak FUD rn alongside cryptos retrace across the industry, everyone is still scared post-libra and with unlocks fud still…

— Bastille (@BastilleBtc) February 24, 2025

Traders are particularly wary of the unlock’s implications, given the possibility that the FTX estate may liquidate a significant portion of its holdings to meet outstanding obligations.

Historically, large token unlocks have exerted downward pressure on prices as traders react by preemptively selling or hedging their positions. This appears to be occurring now, with SOL recently declining to pre-election levels around $157.

Will Solana Price Rise Again?

Technically, Solana’s price looks ready for a bounce in the coming weeks due to an observable bullish fractal on its daily chart.

Notably, SOL has entered oversold territory on the Relative Strength Index (RSI), a level that previously triggered strong rebounds. The RSI is near 30, a zone where SOL saw sharp recoveries in the past.

In June 2024, a similar RSI dip led to a 51% rally, adding $65.87 to SOL’s price. A deeper correction in October resulted in a 65% surge, pushing SOL up by $116.86. Smaller rebounds also occurred when RSI approached oversold conditions.

Currently, SOL is testing the $155 support level, which previously acted as a reversal zone. If history repeats, a rebound could push the price toward $220 or higher.

However, a breakdown below this level may lead to further declines, with the next supports at $140 and $125.