In the past 24 hours, a significant Solana (SOL) whale made waves in the market by unstaking 100,000 SOL tokens, worth approximately $14.9 million, and transferring the funds to Binance, one of the largest crypto exchanges. This substantial move comes on the heels of a similar transaction just three days prior when the same whale withdrew another 100,000 SOL tokens, bringing the total to 200,000 SOL transferred to Binance this week. With Solana’s price experiencing a notable rally, this whale appears to be capitalizing on the recent gains—but could their actions signal turbulence ahead?
Timing The Bull Run
Solana has seen a sharp 21% increase in value this week, surging from $127.25 on September 18 to $153.55. The timing of the whale’s liquidations—right as SOL hits its highest levels in recent weeks—suggests a strategic attempt to profit from the ongoing bull run. By cashing out 200,000 SOL tokens, valued at roughly $30 million, this investor is locking in profits at a time when market sentiment is strongly bullish.
However, such large-scale liquidations could pose risks for Solana’s short-term price momentum. Market observers are now watching closely to see whether further sell-offs will lead to increased volatility in SOL’s value.
This isn’t the first time this whale has shaken the Solana market. Back in June, the same investor initiated a similar selling strategy that contributed to a significant downturn in SOL’s price. Over a 30-day period, the whale offloaded 1.2 million SOL tokens across eight rounds of sales, worth a staggering $178 million. At the time, Solana’s price plummeted from $172 to $128—a 24% crash that sent shockwaves through the market.
The whale’s recent moves are reminiscent of that earlier pattern, raising concerns among long-term Solana holders. The ongoing liquidations may pose a challenge for the bullish momentum, as further sales could create selling pressure and lead to a potential pullback in Solana’s price.
FTX’s Shadow Looms Large
Adding to the pressure on Solana is the continued impact of the FTX bankruptcy estate’s liquidation of its holdings. Just two weeks ago, the estate unstaked $1 billion worth of Solana, moving it out of its wallets. With another $1 billion in Solana still under the estate’s control, market participants remain wary of further large-scale sell-offs that could drive SOL’s price downward.
Also Read: Solana Eyes 50% Of Ethereum’s Market Cap – Can Faster Speeds And Lower Fees Close The 28% Gap?
What’s Next for Solana?
With the combination of whale activity and potential FTX sell-offs, Solana faces a challenging road ahead despite its recent price surge. While bullish sentiment remains strong, large-scale liquidations like these often act as resistance points for further upward momentum. If the whale continues to offload substantial portions of their SOL holdings, it could lead to a short-term dip in Solana’s price, providing buying opportunities for some and losses for others.
In the coming days, market participants will be closely monitoring on-chain activity and trading volumes, particularly on Binance, where the whale’s funds have been transferred. Solana’s resilience in the face of these potential headwinds will be key to determining whether the current bull run can continue or if the market will face another sharp downturn.
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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