A recent move by a large Solana (SOL) whale to un-pin and sell his holdings on Binance has raised concerns about the sustainability of the coin’s current price rally. The whale’s actions are particularly significant because in similar instances in the past, similar sales have led to significant drops in the price of SOL.
Will history repeat itself, or will individual trading be enough to support the current price rally? These analyses offer some insights.
Solana whale sells for profit
Data from Solscan shows that a Solana whale unsharpened 100,000 SOL tokens 15 hours ago and moved them to leading cryptocurrency exchange Binance. This comes just three days after the same investor unsharpened 100,000 SOL tokens and moved the assets to the same exchange.
The whale’s decision to unstake and move his SOL holdings to Binance may have been driven by a desire to capitalize on the current altcoin price surge. Solana is trading at $151.88 at press time, up 9% in the past seven days.
However, this price momentum may face resistance if the whale continues to liquidate its holdings. Historically, whale sales have had a significant impact on the price of #SOL, as seen between June 7 and July 7 when he sold 1.2 million SOL worth $178 million, causing the price to drop from $170 to $128.
Despite this, bullish indicators still dominate. The Parabolic Stop and Reverse (SAR) indicator, with its points below the SOL price, indicates a strong uptrend. Additionally, the Chaikin Money Flow (CMF) indicator, currently at 0.27, indicates high buying pressure, suggesting that the market’s bullish bias towards Solana is still in place, at least for now.
Solana SOL Price Prediction: Whales vs Other Investors
The continued buying pressure from other market participants may offset the impact of Solana whale actions. If this buying momentum continues, the price of SOL may rise towards the resistance level at $160.09. If this critical resistance level is successfully broken, it will pave the way for SOL to trade at $188.74.
