In the volatile cryptocurrency world, Solana (SOL) became one of the most watched digital assets last week when its price briefly catapulted to over $200. However, it didn’t stay aloft for long and soon came plummeting down to earth, registering a price below $190. This abrupt swing had an unprecedented ripple effect on the market, which was no later punctuated by significant maneuvers from big-time investors, or the so-called ‘whales’.
The past day was punctuated by unusual volume, offering a peek into how token bigwigs were evaluating the market. The flurry of whale activity began as the market showed the first signs of slowing down and Solana’s value started dipping.
Disclosed by the on-chain data tracking service, Whale Alert, these transactions were a sight to behold. In a striking sequence of events, one notable move involved nearly a million SOL worth a whopping $189.55 million. Minutes later, Whale Alert unveiled another major move of about 1.89 million SOL worth $361.7 million. Shortly after, a third transaction was carried out moving more than a million SOL, equal to $209.29 million. The crowning jewel in this string of movements surfaced as one million SOL, equivalent to $190 million at the moment of transaction.
Curiously, each of these colossal transactions seemingly had a shroud of mystery thrown over them. Their origins and destinations were unidentified wallets, hinting that the owners were unknown and their addresses untagged. This often points to whales choosing to sell their tokens ‘over-the-counter’ to lessen the blow their selling might inflict on the market. Alternatively, it might simply mean a reshuffling of their coins.
The whale activity didn’t come to a halt though; more impressive movements surfaced hours later as a sum of 149,999 SOL, valued at slightly over $27.79 million, was transferred from an obscured wallet to Binance exchange. This shift was a deviation from prior ones since the destination was a known crypto exchange. As a general rule, such an event is indicative of an intention to sell and a $27.79-million sale could bear hefty downward pressure on SOL’s price.
In an encouraging turn of events, the subsequent whale transaction signaled a positive shift, involving a movement of 146,121 SOL worth $26.83 million from the Kraken exchange to an anonymous wallet. It suggested that the whale was most likely transferring the tokens to a safer place in anticipation of a more favorable market condition. This inherently allows a drop in the selling pressure on the asset.
Despite the day’s whale turbulence, the SOL price showed resilience. If the selling pressure continues to ease, and Bitcoin’s dampening effect on its price is alleviated, then there’s potential for a SOL rally over the $200 mark again.
