A Solana (SOL) whale has made a significant move, withdrawing 47,154 SOL—valued at approximately $7.98 million—from Binance and staking it. This latest transaction is part of a larger pattern, as the same whale has staked a total of 134,482 SOL, worth about $23.58 million, over the last three days.
Growing Trend Towards Staking
The substantial staking activity underscores a shift in investor sentiment. Staking has gained traction as a more stable investment strategy compared to the high-risk nature of meme coins, which, despite their potential for rapid gains, lack sustainability. By staking SOL, investors contribute to network security while earning a steady return, reinforcing its appeal as a long-term asset.
Moreover, an increase in staking reduces Solana’s circulating supply, potentially stabilizing its price. However, if a large number of investors choose to unstake at the same time, selling pressure could increase, potentially leading to a downturn in SOL’s price.
Is Solana’s Bottom In?
Despite the positive momentum in staking, Solana’s price action suggests it has yet to find its definitive bottom. Analysts point to the $120 level as a key support zone, given its historical role as both resistance and support over the past year.
With upcoming token unlocks, some traders fear increased volatility. However, analysis indicates that SOL could maintain its position around $120, provided liquidity sweeps remain controlled. If SOL holds above this level post-unlock, it could signal a market recovery. On the other hand, a break below $120 could trigger a further decline, potentially pushing the price toward the $100 mark.
Also Read: Solana Price Analysis: Is a Rebound Coming After SOL Drops to $161?
The whale’s move to stake millions in SOL highlights a maturing investment strategy focused on long-term stability rather than short-term speculation. While this trend supports price stability, the market still awaits confirmation of SOL’s bottom, making the $120 level a crucial area to watch in the coming weeks.
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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