Data shows that a Solana whale has deposited SOL worth $11 million to Binance, which could be bearish for the asset’s price.
Solana has seen sharp bullish momentum over the past month
Since Bitcoin’s rally to the $35,000 level began, the cryptocurrency market as a whole has had a blast. Of the assets, Solana particularly stood out because its returns were one of the highest.
Over the past 30 days, SOL has witnessed an exceptional rally of over 84%, pushing its price past the $43 mark. The chart below shows what the asset’s trajectory looked like over this period.
The value of the coin seems to have been rapidly going up in recent weeks | Source: SOLUSD on TradingView
The chart shows that Solana had managed to rise to $47 at the beginning of the month, but shortly afterwards the coin recorded a small pullback. The asset has since recovered 9% from these local lows, but has yet to make a full comeback. However, momentum for the coin appears to be increasing as it has grown by 3% over the past day.
During this sharp rally over the past month, Solana also improved its position in the cryptocurrency sector as it claimed the seventh position on the market capitalization list.
Looks like SOL has a market cap of $24.4 billion at the moment | Source: CoinMarketCap
Of course, as with any rally, profit taking can be something to watch out for as it can lead to a local top formation. It looks like a whale is trying to do just that.
SOL Whale deposited a large amount of money with Binance today
This is evident from data from the cryptocurrency transaction tracker service Whale alerta large transaction has been spotted on the Solana blockchain in the past day.
This transfer moved 249,999 SOLs across the network, worth approximately $10.8 million when the transaction was executed. Given the large amount of money involved, it is likely that a whaling entity was behind it.
In general, trades can be something to keep an eye on as they can sometimes have noticeable effects on the market. How the price is affected by the movement of a whale obviously depends on what they intended to do with it.
In the current case, the transfer has been moved from an unknown wallet (probably the whale’s address) to a wallet linked to a central platform: the Binance exchange.
One of the main reasons why an investor might transfer their coins from their own wallet to one of these central entities is for selling purposes. So it’s possible that the whale wanted to sell here and reap the profits it would have amassed during the last rally. .
The price of cryptocurrency could soon see some resistance if selling was indeed the goal in this whale’s mind.
Featured image Shutterstock.com, chart from TradingView.com
