Solana (SOL)

Solana Whale Sells $99.5M In SOL – What 695,000 SOL Liquidation Means For The Market

In a striking development within the cryptocurrency space, a major Solana whale—potentially an institutional entity—has been making headlines with its consistent liquidation of holdings throughout 2024. According to Lookonchain, this whale has offloaded a staggering 695,000 SOL, worth approximately $99.5 million, since the beginning of the year. This translates to an average sale of about 19,306 SOL, or $2.76 million, per week.

Despite these massive sales, the entity remains a significant player in the Solana ecosystem, holding 1.88 million SOL, valued at around $255.89 million, which is still staked. Recent activities include notable withdrawal transfers such as 7,500 SOL, 12,500 SOL, and several 10,000 SOL transactions. These moves suggest a disciplined strategy in managing their Solana assets.

Additionally, the whale has been actively withdrawing staking rewards, with transactions like 20,000 SOL being pulled in separate instances under the “WITHDRAW STAKE” label. This meticulous approach to liquidity management has sparked considerable speculation within the crypto community.

Observers are divided on the whale’s motives and the potential implications for Solana’s market performance. Some speculate that the large sell-offs might be contributing to bearish pressure on SOL, with one commentator suggesting that the whale might be “taking profits to recycle back,” implying a strategy of selling off to reinvest later. Others worry about broader market repercussions, pointing to the possibility of a downturn while noting the whale’s continued substantial stake in Solana.

The timing of these sales is particularly notable given Solana’s recent market performance. The cryptocurrency has faced a significant decline, with its value dropping by 25.91% compared to XRP over the past four months. This downward trend is further highlighted by monthly candlestick patterns and the Relative Strength Index (RSI), which hovers between 60-70, suggesting potential bearish divergence.

Also Read: Solana (SOL) Price Predicted To Plunge To $85 – Benjamin Cowen’s Analysis Highlights Alarming Similarities To Ethereum’s 90% Drop

Analysts, including Alan Santana, have revised their forecasts for Solana, predicting a possible decline to $55. Key Fibonacci retracement levels at $137.03 and $58.82 are now under close watch as crucial support zones.

As the crypto market reacts to these developments, the Solana community and investors are left grappling with the implications of this whale’s massive liquidations. Whether this represents a strategic profit-taking maneuver or a harbinger of broader market shifts remains to be seen.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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