Are Solana (SOL) Whales Ditching The Coin? Ominous Data Spotted On Chain

Recent on-chain data has revealed an alarming trend with regards to a Solana (SOL) whale investor. Specifically that the anonymous investor was seen unstaking and withdrawing a large volume of SOL, raising questions about a dump.

Meanwhile, the whale movement coincides with a recent decline in SOL, further complicating SOL’s outlook.

Solana Whale Activity Sparking Dumb Speculations

On-chain data analytical platform Lookonchain disclosed the recent Solana whale activity in a post on social media X.

According to the details, the whale or large institutional investor unstaked and withdrew 139,532 SOL valued at about $19.5 million on Wednesday. In a subsequent move, the whale transferred 139,447 SOL worth approximately $19.5 million into Binance exchange at a loss of $5.5 million.

Meanwhile, on July 22, the whale withdrew 138,894 SOL valued at $25 million from Binance at a market price of $180. Although the major reason for the above transfers remains unknown, the primary reason could be to maximize profits.

Due to their large holdings of crypto, whales have the power to influence prices in the crypto market. They typically sell crypto at higher prices and buy back when prices drop. The latest SOL transfers coincided with a sharp drop in the coin’s price, as it fell from $160 at the beginning of the week to $136 at the time of writing.

Within the last 24 hours, SOL’s price has experienced a 2.4% uptick to $136.47. However, SOL is still down by over 14% in the past week, adding to the decreasing intraday trading volume of 45.3%.

Solana Price Trend In August

Solana price experienced both up and down movements in August. At the start of the month, SOL traded in the $150 price range, falling from the $171 recorded on July 31. The coin continued to trade downwards, reaching $142.2 on August 19.

Towards the end of August, Solana’s price recovered from its low and climbed towards $160. This move came after the coin crossed a key resistance level at $150.

This recovery was due to the emergence of fresh long positions, which fueled increased demand for the coin.

Speculations about an upcoming Solana Exchange-Traded Fund (ETF) and the discovery of a bullish crossover also fueled the price increase. However, by August end of August, SOL quickly pared off most of its gains, trading at $136.47 today.

Positive Ecosystem Trend that Could Overturn Ominous Data

Ali Martinez, a popular crypto analyst, recently shared a bullish forecast for Solana. He said that Solana made an Adam & Eve pattern that suggested an uptick toward $164. According to him, Solana could push toward $200 if it successfully breaks the region.

One notable factor that could fuel this prediction into reality is Solana’s ability to remain strong on decentralised exchanges. Additionally, the eventual launch of a Solana ETF could cause SOL to expand.

Experts predict Solana might reach $500 weeks after launching the first set of ETFs.