The crypto market has continued to trade negatively today, and prices of cryptocurrencies are critically down.
Solana has also noted significant price dips over the last day, but large amounts of SOL were spotted moving among whale addresses, according to data provided by on-chain monitoring firm Whale Alert.
According to the data, two transactions involving a total of 1,101,493 SOL worth over $213 million were moved among unknown wallet addresses in less than two hours. While the two transfers were nearly identical, they happened in portions of 567,654 SOL and 533,839 SOL consecutively, sparking discussions across the crypto community.
Mystery SOL movements raises eyebrows
Notably, the senders and destinations of both transfers were not identified by the tracker, sparking curiosity among market watchers about the reason behind the transfers and whether they have had any impact on the market’s trading performance.
Following the anonymous nature of the massive SOL transfers, there are speculations that it could be a sign of major volatility ahead, as the market has suddenly flipped negative in the past day, triggering significant price dips.
SOL rebound soon?
While whale activities like this are major pointers to the potential performance of a concerned cryptocurrency, the mysterious nature of the transfers has made it difficult to predict the intention behind the transactions and how they may affect the market.
However, such big moves coming at a time when the crypto market is down suggest that whales may be dumping their holdings to save previously accumulated profits. As such, investors are concerned that more mystery moves like this could sustain the ongoing market bloodbath, dashing hopes of a potential recovery soon.
With long-term investors still showing optimism about a potential surge in the price of the token, they are closely monitoring on-chain movements and taking crucial precautions in an effort to hedge against further losses.
As of press time, data from CoinMarketCap shows that Solana is trading at $185.51, with a notable price decline of 3.61% over the last day.
With Solana’s trading volume showing a massive decline of over 45% over the last day, it appears that retail and whale sellers have dominated the market, outweighing the demand for the asset during the period.
As such, the current decline in SOL’s price is attributable to massive selling spree involving SOL, reduced optimism due to the delayed U.S. spot Solana ETF launch, cautionary moves among bear traders, and more.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team