A Solana validator recently unstaked a significant amount of SOL, totaling $30 million, sparking concerns about a potential crash in the Solana market. This move comes as the market experienced a mild correction, with the validator unstaking 200,000 tokens over the past three days and depositing them on Binance, the largest cryptocurrency exchange by trading volume.
This is not the first time this validator has made such a move, as on-chain data shows that they previously unstaked and sold 1.2 million SOL, worth $178 million, between June and July. This previous selloff caused the price of Solana to plummet from $170 to $125 in less than three weeks, highlighting the impact that large transactions from whales can have on the market.
The sentiment around Solana has been on a decline, with social platforms showing a neutral momentum in recent days. Despite this, the current $30 million unstaking is significantly lower than the previous selloff, indicating a potentially less severe impact on the price of SOL this time around.
Despite the recent correction in the market, Solana has recorded a 9% price hike over the past week and has been consolidating around the $150 mark in the past 24 hours. The asset’s daily trading volume has decreased by 33%, currently sitting at $1.9 billion, while the Relative Strength Index (RSI) for SOL is at 48, indicating a neutral zone.
While there have been no signs of a massive selloff of SOL so far, caution is advised as the broader crypto market continues its upward momentum. If the market maintains its positive trend, a significant price fall for SOL is unlikely, but the impact of whale transactions on the market remains a point of concern for investors. It will be important to monitor the situation closely in the coming days to see how the market reacts to this latest unstaking event.