Anika Begay
On-chain data shows that a Solana (SOL) whale made a large deposit to Binance last day, a sign that could be bearish for its price.
A massive transaction occurred on the Solana network in the past few days
According to data from cryptocurrency transaction monitoring service Whale Alert, a major movement has been detected on the Solana blockchain in the last 24 hours.
The SOL transaction in question involved the movement of 184,241 tokens across the network, worth over $26 million at the time the transfer was processed.
Movements of such vast magnitude are usually associated with whales, gigantic entities considered to be influential beings on the market precisely because of their ability to move in large quantities.
Therefore, it is worth keeping an eye on moves like this, as while they may not have a direct effect on the price of the cryptocurrency, they can at least provide clues about the sentiment among these large investors.
To determine what the whale might have intended with this latest transfer of Solana, it is necessary to examine the details of the address.
Looks like this SOL transfer required a fee of just $0.3 to go through on the blockchain | Source: Whale Alert
As shown above, this Solana transaction went from an unknown wallet to an address linked to the cryptocurrency exchange Binance. Unknown wallets refer to addresses that are not affiliated with any known centralized exchange and therefore, are likely to be the personal wallets of investors.
Therefore, it would appear that the whale moved coins from its self-custodial wallets to Binance with this transaction. This type of transaction is called an exchange inflow.
Typically, investors make inflows of currency whenever they want to use one of the services provided by these platforms, which may include selling. As such, these transfers can prove bearish for the SOL price.
Since the inflow of foreign exchange in question is of considerable magnitude, it can naturally have a visible effect on the price of Solana, if the whale really intends to sell with this move.
Now it remains to be seen whether the cryptocurrency will experience a bearish effect following this transaction or not.
Price SOL
The last 24 hours have been red for the cryptocurrency market and Solana has been no exception. The chart below shows how the coin’s recent performance has looked.
The price of the asset appears to have gone down over the last few days | Source: SOLUSD on TradingView
Yesterday, Solana had started a rally and reached the $152 level, but it didn’t take long before the rally ran out of steam and since then the coin has corrected by more than 5%, dropping to the $145 level.
In terms of weekly returns, SOL is currently at negative 8%, making it the worst performer among the top 20 cryptocurrencies by market cap. In fact, Polkadot (DOT) and XRP (XRP) are the only other coins to have produced negative returns for this period.
Featured image from Dall-E, whale-alert.io, chart from TradingView.com
