Solana faces Binance hacker’s $95.9M swap – Can SOL defend $90?

The market continues to track the Binance hacker’s wallet activity.

As AMBCrypto recently flagged, the hacker had used stolen funds as collateral to borrow Ethereum [ETH] on Aave. This complicated efforts to freeze the funds, with further asset swaps appearing to extend the laundering process.

As can be seen in the chart below, the hacker is actively swapping 970k SOL ($95.9 million) into BTC via the Relay Protocol.

The key takeaway?

Around 486,970 SOL ($46.4 million) has already moved in the past hour, meaning nearly half of the total stash has been routed through the swap.

This has sparked fresh speculation about what the hacker’s moves could mean for Solana.

Could Solana’s $90 support attract buyers?

Interestingly, traders are positioning for more downside.

One analyst highlighted a whale opening a $23 million SOL short with 20x leverage, with a liquidation price of $123.2. At around $95 per SOL, this is a decent bearish position and adds to the short pressure as Solana [SOL] rotates into Bitcoin. 

The timing isn’t great for Solana bulls. SOL has had a losing streak for over 6 weeks now and is currently in a bear trend. This puts the $90 support level back in focus as the next key downside test.

With selling pressure building and traders piling into shorts, could $90 turn into a bull trap rather than a solid base for recovery?

Weak capital rotation into Solana raises bull trap risks

Despite October’s risk-off environment, capital remained heavily tilted toward Bitcoin.

From a technical standpoint, Bitcoin dominance ended the month at 60.5% and has remained within a key resistance range.

This has led to the Altcoin Season Index declining by more than 15%, showing that altcoins continued to underperform in comparison to Bitcoin. This points to a clear shift in market positioning, with traders still favoring BTC over higher-risk altcoins.

The chart below demonstrates this perfectly.

In October alone, the SOL/BTC ratio dropped by 12%, which is the worst performance of the month since November. This highlights Solana’s growing weakness against Bitcoin, with the ratio showing that SOL continues to lose ground as capital rotates toward BTC.

Technically, the setup is becoming increasingly bearish for Solana. 

In addition to the ongoing SOL to BTC exchanges made by the Binance hacker, increasing shorting positions show that bearish positioning is increasing.

As Solana has been in a downtrend for the last 6 weeks, the $90 level becomes an important level to watch. A breakdown below it could turn the current setup into a bull trap, especially as capital continues to favor Bitcoin over altcoins.

Final Summary

• The Binance hacker’s SOL-to-BTC swaps and rising short bets are adding pressure on Solana, putting $90 support at risk.

• SOL/BTC fell 12% in October as investors favored Bitcoin over Solana, raising the risk of a further drop below $90.