Solana’s meteoric rise in recent months hit a snag on Thursday, plunging 8% as the price slipped below $100. This crash is a stark reminder of the crypto market’s volatility and was partly fueled by profit-taking from some of Solana’s biggest whales.
A single whale, identified by Lookonchain, dumped 303,756 SOL ($38.2 million) on Binance, likely triggering a wave of selling. This was also not this whale’s first time, as data shows this particular whale has a history of strategic SOL trades, reaping hefty profits along the way.
A whale deposited 303,756 $SOL($32.8M) to #Binance today, possibly selling it for profit.
The whale withdrew 423,754 $SOL($28.18M) at $66.5 from #Binance in the past 1 month.
And still has 119,998 $SOL ($12.44M) staked, the profit exceeding $17M!
This whale also withdrew… pic.twitter.com/Sptfj7uUIa
— Lookonchain (@lookonchain) December 28, 2023
In September, the whale withdrew SOL at $20, then deposited it again at $43 in November, pocketing a cool 115% profit. Even after this recent sale, the whale still holds a sizable stake worth over $17 million.
Despite recently flipping XRP on the market cap rankings and surging past BNB to #4, these transactions pushed SOL down enough for BNB to surpass it again in the rankings.
However, this wasn’t a solo act. Social media buzz from whale trackers indicates further large SOL transfers from private wallets to exchanges, suggesting widespread profit-taking or risk reduction among whale investors.
Two particularly notable transactions included the movement of $183 million in SOL to Coinbase and $11.5 million to the same exchange from another private wallet. These transactions, coupled with traders shifting funds from SOL into stablecoins, created a domino effect, sending the price crashing before settling at $98.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
Can Solana (SOL) Recover?
Despite the dip, it’s important to remember the bigger picture. The SOL community has witnessed tremendous growth this year, and even with $18.6 million in liquidations, mostly through long positions, Solana has already clawed back to $105.88, showing a 6.57% in 24 hours, demonstrating its enduring bullish momentum.
Solana has also experienced a 6.39% surge in trading volume. Its current trading volume of $45 billion shows the bulls doing their best to keep their digital asset afloat and not yielding any ground to a further decline.
The recent surges have shown that SOL has potential, and this performance is enough to strengthen the faith of the Solana community despite this minor setback.
Some of the top crypto analysts recently revealed the reasons for their bullish stance on Solana and three other cryptocurrencies, and it will be intriguing to see how Solana’s recovery progresses as we enter the new year.
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