Solana Whales Dump $516M of SOL Tokens Ahead of FTX Distribution Event

Solana (SOL) has been making waves in the crypto market due to its high demand, price rallies, and some downtrends

Solana (SOL) has been a hot topic in the crypto market, largely due to the high demand, price rallies, and some downtrends. Recently, altcoin faced one of the biggest declines in the broader crypto market crash.

Solana (SOL) has been a hot topic in the crypto market, largely due to the high demand, price rallies, and some downtrends. Recently, altcoin faced one of the biggest declines in the broader crypto market crash.

More is at risk, with whale moving $516M SOL to the Coinbase Prime exchange, raising fears of a potential sell-off. With it already facing resistance, let’s discuss the potential impact of this massive whale activity.

Whale Transfers Shake Solana Market Amid Price Recovery

Amid the broader crypto market downturn, the Solana price crashed to a multiple-month low of $126.11. With a 15% recovery over the last 24 hours, investors are eyeing a recovery, especially given the rising investor interest and high open interest of $4.63B per Coinglass data.

However, the on-chain data reveals that whales were constantly on the move earlier for buying the dip and now for the profits. Recently, one Solana whale bought $14 million worth of SOL, withdrawing it from Binance and staking the tokens. However, other whales are on the opposite side, eyeing a profit on the recent recovery.

This is because the on-chain data analytics revealed several large transactions of whales moving SOL to the Coinbase Prime exchange.

This includes five whale accounts unstaking 5.52M SOL, worth $810M, and depositing $516M to the Coinbase Prime, fueling speculation that major whales are looking to offload their holding.

This move can either take profit or hedge against a potential downturn as $2.06 billion worth of token unlocks to happen today.

Solana Price Under Pressure: Will It Crash?

The Solana whale transactions indicate that a potential sell-off might take place. More importantly, this could build selling pressure as the SOL price struggles to recover. Such selling can also introduce downward pressure, resulting in further declines.

Additionally, the FTX distribution would add 2.2% supply (more than $1 billion SOL) to the Solana network, making it one of the biggest unlocks. Such events increase the liquidity of the token, impacting the price on a short-term basis. More unlocks are expected in the upcoming months, so the price can face turbulence.

However, as the trading volume is 28% up to $6.4B and OI surged, this indicates investors building confidence. More importantly, it is unclear when the whale will sell, so that the impact may vary significantly.

Despite a significant recovery, the Solana price is struggling to maintain its bullish momentum. At the time of writing, it hovers around crucial support levels, trading at $143.91 with a market capitalization of $72.98B.

The whale moves are building selling pressure around the token, and if this pressure intensifies, the price could drop to the $100 psychological level.

The SOL price might crash to $70 in the worst-case scenario. In contrast, it might surge to $180 if the buyers stepped in. Therefore, $180.28, $201.47, and $206.75 are key resistance levels to watch.

Key Levels to Watch

Despite a significant recovery, the Solana price is struggling to maintain its bullish momentum. At the time of writing, it hovers around crucial support levels, trading at $143.91 with a market capitalization of $72.98B.

The whale moves are building selling pressure around the token, and if this pressure intensifies, the price could drop to the $100 psychological level.

The SOL price might crash to $70 in the worst-case scenario. In contrast, it might surge to $180 if the buyers stepped in. Therefore, $180.28, $201.47, and $206.75 are key resistance levels to watch.

Bottom Line

With the recent market crash, the whale activity is in its prime, either for buying the dip or taking the most profit. Five Solana whales also unstaked and deposited $516M of SOL tokens on an exchange. The SOL price might witness a temperory downtrend if they sold these due to increased selling pressure.

Investors must monitor the whale movement, SOL token unlocks, and the key support level for better Solana price prediction analysis.

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