Solana (SOL) has experienced a steep price decline lately. The crypto’s value dropped by 21.37% in the past 24 hours, now priced at $113.23.
Over the past week, the price has decreased by 40.65%. Various factors contribute to this drastic drop. Besides, the broader crypto market is seeing red, with other major assets like Ethereum and Bitcoin also experiencing price dips
Whale Activity and Market Manipulation
A major whale has moved a substantial amount of SOL. According to Wu Blockchain, a whale identified as 9dZAPP…dnzAz3 withdrew 1.035 million SOL, equivalent to about $120 million, from multiple validators.
According to Solscan, since July 16, a SOL whale: 9dZAPP…dnzAz3 has withdrawn a total of 1.035 million SOL (worth about $120 million) from multiple validators including Cogent Crypto, Block Logic, and LunaNova, and transferred all of them to Coinbase Prime. The identity of the…
— Wu Blockchain (@WuBlockchain) August 5, 2024
The whale transferred these assets to Coinbase Prime, causing speculation and uncertainty in the market.
X user and analyst Mert from Helius highlighted manipulative tactics affecting SOL’s price. He explained that SOL is not naturally decreasing but is being pushed down by whales placing spoof sell orders on exchanges.
Moreover, this strategy pressures less experienced investors to sell their holdings, fearing further losses. The intention is to repurchase at a lower price, exploiting market panic.
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Impact on Solana’s Market
These actions have sparked concern among SOL investors. The large transfers and manipulative sell orders create an impression of a substantial sell-off, driving prices down. This environment fosters uncertainty, leading to a snowball effect of selling.
The recent plummet in Solana’s price is attributed to strategic market manipulation by some stakeholders. The current volatility highlights the influence of whale activities on the crypto market.
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