Although Solana (SOL) has experienced a massive bull run over the past few days, recent activity by whales suggests that a potential price crash could be around the corner.
In the past 24 hours, a Solana whale redeemed 100,000 SOL tokens and moved the funds to Binance, one of the most liquid cryptocurrency exchanges. At the time of redemption, the tokens were worth approximately $14.9 million.
The move to liquidate a significant portion of the massive Solana portfolio follows a transaction that took place three days ago, when the same investor unstaked 100,000 SOL tokens and moved the assets to Binance. The timing of these transactions is particularly noteworthy.
Withdrawing Solana on 21% Gains
Just last week, on September 18, Solana was valued at $127.25 per token. However, this week, the price has risen significantly to $153.55, a 20.66% increase in one week.
Essentially, the investor has taken action this week to liquidate 200,000 SOL tokens worth around $30 million in order to take advantage of the recent bull run.
This is not the first time this investor has implemented such a strategy. Market watcher Lookonchain has followed the recent movements of this whale and highlighted a previous instance where this whale caused a 24% price crash in Solana.
The previous 1.2 million SOL plunge caused the price to plummet by 24%
Specifically, the analysis shows that the well-known investor dumped a staggering 1,200,000 SOL tokens through eight sales rounds between June 7 and July 7. On June 7, SOL was trading as high as $172. The whale initially sold 100,000 SOL, causing the price to drop to $157 the next day.
The sell-off continued, and as of June 24, Solana’s market cap had plummeted to $123 following further selling.
Although the price rose again in the following weeks, reaching $154, the whales sold more SOL tokens. After completing this round of sales on July 7, SOL fell to $128 the next day.
This highlights how whales can cause significant short-term losses to more committed Solana holders. Notably, the 1.2 million SOL tokens cashed out in 30 days are worth a whopping $178 million.
As Solana’s bullish momentum gathers momentum as investors resume similar selling strategies this week, it suggests that the bullish trend could face resistance in the coming days if whale liquidations continue.
FTX Selling Pressure
In addition to this particular investor, Solana is also facing significant selling pressure from the FTX bankruptcy estate.
Two weeks ago, the asset manager uncollateralized $1 billion worth of Solana and transferred all of it. The bankrupt company still has an equivalent amount of assets to sell. jmay1130
