The Solana price growth in recent months seems to do that hit a barrier just above the $120 price level. The price of Solana (SOL) dropped about 8% on Thursday to around $98, demonstrating the sheer volatile nature of the crypto market.
As a result, Solana slipped under the BNB in market capitalization rankings, such as the the latter collected 9% to regain fourth place. According to data from the chain, there has been an increase in transfers of what appears to be profit-taking from Solana whales.
Large Whale sells $38.2 million worth of SOL tokens
When whales move a lot of crypto, they can shake things up. According to Lookonchain, an anonymous investor has deposited 303,756 SOL tokens worth approximately $38.2 million on Binance, possibly as part of a sell-off. Further details show that this particular whale has made strategic SOL trades in the past and made huge profits.
The whale withdrew 19,704 SOL from Binance on September 29. Solana traded at $20 during this period, making the transfer worth approximately $394,000. The whale would then deposit it into Binance on November 8 for $43 per token, raising $453,000, a 115% gain. Lookonchain data shows that 119,998 SOL tokens worth $12.44 million are still staked at the address, and there is an unrealized profit of more than $17 million.
A whale deposited 303,756 $SOL($32.8 million). #Binance today, possibly selling for a profit.
The whale withdrew 423,754 $SOL($28.18 million) for $66.5 from #Binance in the past 1 month.
And still has 119,998 $SOL ($12.44 million) bet, winnings exceed $17 million!
This whale also retreated… pic.twitter.com/Sptfj7uUIa
— Lookonchain (@lookonchain) December 28, 2023
Speculation that other large holders of SOL, known as “whales,” have recently sold portions of their holdings may have contributed to the recent price decline. Similar social media posts from Whale alerts from Whale transaction trackers showed several large SOL transfers from private wallets to crypto exchanges on Thursday, indicating Whales are holding onto profits or reducing their exposure to the token.
Two of the most notable transactions were the transfer of 1,832,958 SOL worth $182.9 million from an unknown wallet to Coinbase and the transfer of 114,046 SOL worth $11.5 million from another private wallet to Coinbase.
— Whale Alert (@whale_alert) December 28, 2023
— Whale Alert (@whale_alert) December 28, 2023
Trading data also suggests that traders moved funds from SOL to stablecoins. As a result, Solana’s price dropped from $110 to $98 within 24 hours.
SOL price recovers to $107 | Source: SOLUSD on Tradingview.com
Current state of Solana
The SOL community and ecosystem have witnessed it one of the best price growth this year. Approximately $18.6 million worth of Solana positions have been liquidated in the last 24 hours, with $10.42 million of that coming from leveraged long positions. Data from MintGlass shows. This profit-taking sentiment appears to have turned around in BONKSolana’s first dog-themed meme token, which is now down 50% from its all-time high.
Solana has since recovered some of the losses and is now trading at $108, showing that the crypto has not lost all its bullish momentum. Solana recently reached a yearly high of $123.76 on December 25, a 20-month high.
Featured image from CNBC, chart from Tradingview.com
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