Deep-pocketed crypto traders are shifting hundreds of millions of dollars worth of Solana (SOL) to popular crypto exchange platforms even as the altcoin has rallied more than 50% in the past week. With whales unstaking huge amounts of Solana tokens, is a market sell-off on the horizon?
On Tuesday, blockchain tracker Whale Alert flagged multiple transactions involving Solana. It appeared that the interest in SOL was starting to wane.
Whale Interest In Solana Dips
An anonymous whale just moved more than 1.2 million Solana—worth nearly $150 million at Solana’s current price—to an unknown wallet, according to data by Whale Alert. Since the identity of the Solana whale in question is unknown, it’s difficult to determine why they transferred the cryptocurrency.
Another undisclosed wallet transferred over 456K SOL, worth nearly $54 million, to an unknown recipient. On Tuesday, $19.4 million worth of Solana (more than $163K) was sent from an unidentified whale to a wallet that, Whale Alert said, is linked to Binance, the crypto exchange giant.
Other massive transactions involving Solana on Whale Alert’s radar include 256,531 SOL, worth around $30.9 million, transferred from an unknown wallet to prominent crypto exchange Coinbase; 87,351 SOL, amounting to roughly $10.4 million, moved from an unidentified wallet to Coinbase; 97,294 SOL, worth nearly $10.8 million shifted from an undisclosed wallet to Coinbase.
If history is any indication, high-net-worth investors — otherwise known as whales — dumping or accumulating tokens can shake markets and cause price fluctuations. In November, CoinGape reported that Solana prices fell below $55 due to whale behavior.
Solana Has Rallied 50% In 7 Days, Will The Momentum Continue?
As of writing, the SOL price stood at $112.4, up 1.6% in the last 24 hours. Meanwhile, the altcoin has witnessed a massive surge of over 50% in the last seven days and skyrocketed a whopping 906% year-to-date. The growth comes on the back of the bullish sentiment around the crypto space, which has propelled Bitcoin above $42,000.
According to data from Santiment, the hype around Solana, as well as the weighted sentiment for SOL are on the rise. This suggests that more users on social media are bullish on the altcoin. Furthermore, DEX volumes on Solana have increased 100-fold since the last quarter. These metrics are a good omen for existing Solana holders and future buyers.
However, considering the volatile nature of the crypto market and the recent choppy trading noted in the broader digital asset space, investors should exercise due diligence with their investment strategy.
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