A Solana (SOL) whale has recently made headlines after unstaking 200,000 coins, valued at approximately $30 million, over the course of the last three days. This significant move was detected by onchain data from Solscan, which also revealed that the individual transferred the tokens to Binance, the world’s largest cryptocurrency exchange by volume.
This is not the first time this whale has made a substantial transaction involving SOL tokens. According to Solscan data, the validator previously unstaked and sold 1.2 million SOL tokens between June and July, amounting to around $178 million. The question on everyone’s mind now is: why is the whale selling their Solana?
One possible explanation for the whale’s actions could be a belief in an upcoming price correction for SOL. After experiencing a sharp decline following the collapse of FTX in November 2022, SOL has been on a steady upward trajectory, briefly surpassing the $200 mark earlier this year. It is plausible that the whale is looking to capitalize on potential price fluctuations by selling now and potentially buying back in at lower levels.
However, the movement of such a large amount of SOL tokens into exchanges is typically viewed as bearish, as it raises the possibility of a sell-off in the market. Selling $30 million worth of SOL could potentially have a negative impact on the asset’s price. Despite this, SOL has not yet experienced a significant price dip, with the asset showing gains of 0.7% in the daily charts, 8.7% in the weekly charts, and nearly 12% in the 14-day charts. Since September 2023, SOL has surged by over 679%.
CoinCodex data suggests that SOL may consolidate around its current price levels for the remainder of the month before potentially entering into a rally in mid-October. The overall sentiment surrounding SOL remains positive, with the asset continuing to show resilience in the face of potential market fluctuations.
As the cryptocurrency market continues to evolve and mature, the actions of large whales and institutional investors like this one will undoubtedly have a significant impact on the price and overall trajectory of assets like SOL. It will be interesting to see how the market responds to this latest development and whether SOL will indeed face a price correction in the near future.