Solana, one of the most affected tokens in the cryptocurrency world by the FTX event, also seems to be affected by the price increase. A Solana whale deposited $10.2 million in SOL to cryptocurrency exchange Coinbase after the asset’s price jumped 16 percent today, data shows.
Solana Whale transfers SOL to Coinbase
According to data from cryptocurrency transaction tracking service Whale Alert, a significant SOL transfer was detected on the blockchain the other day. The transaction involved the movement of a total of 537,352 tokens, worth approximately $10.2 million at the time of transfer.
However, the cryptocurrency price has increased slightly since then, so taking into account the latest prices, the same coin is worth $11.1 million.
Due to the large amount of money involved, the sender behind this transfer is likely to be a whale or a combination of multiple large investors. Sometimes, due to the size of the crypto involved, the actions of these large holders can have a dramatic impact on the market.
Therefore, whale trading may be something to watch out for. How this shift will affect prices may depend on the exact intentions of the whales in doing so. Solana whales deposited $10.2 million in SOL on cryptocurrency exchange Coinbase as the asset price rose 16 percent today, data shows.
As shown in the figure above, the sending address of this Solana whale transaction is an unknown wallet. Such addresses are not tied to any known central platform, so they may be off-site personal wallets.
The buyer, on the other hand, was a wallet associated with the centralized cryptocurrency exchange Coinbase. This transfer of tokens from a personal wallet to an exchange is called a trade entry. Probably one of the main reasons investors deposit tokens on a platform like Coinbase has to do with sales. Therefore, entry may hurt the price.
In the current scenario, Solana stock market entry is quite large, which could have a noticeably bearish impact on the asset’s value. Of course, this is only based on the premise that whales intend to use this move to dump coins.
What do whales do?
However, given that the transfer occurred while Solana was in a rapid uptrend, up 16% in the past 24 hours, it seems reasonable for whales to want to take advantage of this profit opportunity.
However, Solana has not shown any significant downtrend since the transaction took place. Instead, the price has only risen further, which means that selling pressure from whales may have been offset by buying pressure (if any).
But one possibility that cannot be ruled out is that whales may have made deposits to sell, but haven’t pulled the trigger yet. In this case, there may be some delay in the bearish effect.
Information source: compiled from COIN-TURK by 0x information.Copyright belongs to the author Alican Ülker, without permission, may not be reproduced