Solana Whale Moves Spark Concerns Amidst 14% Surge

Solana (SOL) experienced a robust 14% surge in the past 24 hours, distinguishing itself amid a stagnant period for Bitcoin. While Cardano (ADA) secured the top spot regarding returns, SOL outpaced its immediate competitor, XRP, suggesting the potential to climb up the market hierarchy.

During market rallies, profit-taking is common, prompting some investors, particularly significant entities, to liquidate their holdings. Blockchain data from Whale Alert, a cryptocurrency transaction tracker service, unveiled two sizable transactions on the Solana blockchain within the last day, raising concerns about potential headwinds for SOL’s recent gains.

Initially, an anonymous whale withdrew 150,000 SOL (valued at $10.2 million) and deposited it into a Binance-linked account. This type of event typically involves a major player in the market. One possible reason to sell during rallies is the transfer of coins from a self-custodial wallet to Binance. This occurred after SOLā€™s upward movement, implying that the proceeds are possibly profits from selling.

Interestingly enough, there was another whale transaction close to 1940 (about 13 hours) following the first one with a similar number of tokens and address details. Such a link implies that one whale could carry out those two orders as a big player prepares for disposal.

SOL Rally Risks: Whale Selling Sparks Concerns

Such a case arises if the substantial holder plans to cash out on the rally by dumping his holdings. In effect, it becomes harder for SOL to sustain its momentum in an upward trend. Certain questions arise concerning whether this recent bullish trend in SOL is here for an extended period because it correlates with such big trades.

Moreover, it highlights the intricate dynamics in the cryptocurrency market. Investors will keenly observe whether SOL can weather the potential headwinds of whale deposits and continue its impressive performance.

Related Reading | Robinhood Unleashes Commission-Free Crypto Trading Across Europe

Furthermore, the authorā€™s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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