Whales Dumping Solana For Meme Coins, Should You Sell?

A Solana whale is now on the radar, having dumped his Solana tokens to buy $WIF and $BONK.

The whale spent 12,400 SOL valued at around $2.7 million to bulk up on the meme coins.

In particular, the whale sold 7,200 SOL ($1.57 million) for 406,000 $WIF tokens at $3.87 each and 5,200 SOL ($1.13 million) for 29.32 billion $BONK tokens at $0.0000387 each.

This came as both tokens witnessed a spike in price in the moments following the buy, with $ WIF skyrocketing 44% and $BONK climbing 31%. 

It’s not just the size of the whale’s transactions that got some attention. The timing is also interesting. This is because $WIF and $BONK rose in the acquisition.

The most whale activity occurred while Solana (SOL) was selling at about $217.18 and had a 24-hour volume of $10.99 billion, surging 13.53% from the day prior.

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Solana added 0.76%, making its total market cap $102.51 billion. Solana has a strong trading volume, so investors are interested, which positions it among the top cryptocurrencies in the market.

Solana’s Price Movement Looking Bullish

Looking closer at Solana’s price chart in a 4-hour timeframe, you’ll notice a steady uptrend with prices staying in an upward channel.

If Solana continues to drive this pattern, it’s likely a sign of active buying and bullish sentiment in Solana’s ecosystem.

The attached chart illustrates the development of this upward channel during which prices consistently formed greater highs and greater lows.

This is indicative of a bullish formation that may suggest continued potential for price appreciation.

On the other hand, the Money Flow Index (MFI) indicator at 64.23 suggests that it is still a buy pressure area.

Trending upward for the MFI (flow of money into and out of an asset) means an increase in demand for Solana.

An MFI above 50 generally suggests buyers are in control, while 80 or more suggests a possible condition of being overbought.

Solana’s MFI at 64.23 shows a decent amount of buying interest but not on overblown levels, meaning the asset may have more to run before a correction happens.

The whale’s investment immediately caused a strong rally in both $WIF and $BONK prices.

Given that these tokens are less liquid and have smaller market caps, large purchases can have a strong impact on market prices, as evident in the 44% increase in $WIF and 31% jump in $BONK.