Data shows Solana whales have made large transactions towards exchanges during the past day, which could signal a selloff.
Solana Whales Have Deposited Tokens Worth $34.1 Million To Binance
According to data from the cryptocurrency transaction tracker service Whale Alert, a few large SOL transfers have occurred on the Solana blockchain during the past day.
Three of the transactions were all headed towards a centralized exchange: Binance. The first of these saw the movement of 256,652 SOL (worth about $11.3 million at the time of the transfer), the second 249,999 SOL ($10.8 million), and the third 282,695 SOL ($12 million).
As the amounts involved in these transfers are substantial, it’s safe to assume that whale entities were behind them. Since the whales are influential beings in the cryptocurrency ecosystem, their transactions can be worth keeping an eye on, as they may precede volatility in the price.
How their transfers may affect Solana depends on what they intend to do with them. As the details of the first of these transactions show below, it would appear that the transfer originated from an unknown wallet (which is possibly the whale’s personal, self-custodial address).
Looks like the transfer needed a very negligible fee of 0.000005 SOL to go through | Source: Whale Alert
As the whale has moved their coins from self-custody to this central entity, they likely wanted to make immediate use of one of the services the platform provides. This includes selling, of course, but it’s hard to say from the transaction data alone whether that is the case here.
When looking at the surrounding price action, though, selling would appear like a reasonable possibility after all, as the SOL price has enjoyed a sharp rally recently that has put the asset 34% in the green for the past week.
It’s not unusual to see whales jumping at substantial profit-taking opportunities like this rally has provided. As such, if profit-taking is indeed the goal, then the rally could feel some impedance from the deposit.
Interestingly, the data of the other two Binance deposits from today reveals the addresses involved were the same as the ones in this transfer, implying that the same entity could be behind them.
The latest of these moves was made just a few hours ago, which might add merit to the theory that the whale is participating in selling, as Solana has seen an additional 10% uplift in the past 24 hours, so this humongous investor may be capitalizing on the opportunity.
Another whale has also made a large Solana transfer inside the window of the last day, but this move is between two unknown wallets, making it hard to guess what the purpose behind it could have been.
The largest SOL transaction in the past day | Source: Whale Alert
This $66.2 million move could have been for selling through a P2P deal, or perhaps it was something as simple as the whale changing addresses. Whatever the case might have been with this and the other transfers, though, Solana has managed to keep up its climb just fine so far.
SOL Price
Following the latest leg in the Solana rally, the asset has claimed the $43 mark for the first time in more than a year.
SOL has observed some rapid growth in the last few days | Source: SOLUSD on TradingView
Featured image from Shutterstock.com, chart from TradingView.com,
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