Network data shows that a Solana whale has just moved a huge pile of SOL to Binance, which could be a bearish signal for the asset’s price.
Solana Whale deposited 1 million SOL on Binance today
According to data from the cryptocurrency transaction tracking service Whale alertseveral large SOL transactions took place on the blockchain during the previous day.
More specifically, six massive transfers were detected on the network. Of these, two transactions were gigantic, with tokens worth US$362 million and US$498 million involved.
These extraordinary transfers, however, occurred between unknown wallets. Addresses like these are not linked to any known centralized exchange, so they are often users’ personal, self-custodial wallets.
Because of this, it is often difficult to say anything about transfers between unknown wallets. They can often be as simple as the investor switching to a new portfolio, which naturally has no particular consequences for the broader market.
The other four whale transactions from the previous day, however, involved central entities on one side, so speculation around them may have a little more ground to stand on.
Of these four, one transaction in particular stands out. In this movement, a whale transferred 1 million SOL into the network, worth more than US$166 million at the time of the transfer. Below are some additional details about this transfer.
Looks like this massive move only required a negligible fee of 0.000005 SOL to go through | Source: Whale Alert
As is visible, the recipient in the case of this transaction was a wallet affiliated with the cryptocurrency exchange Binancewhich implies that the whale transferred coins from your address to the platform.
Such transactions are known as exchange flows. Users make these transfers when they want to use one of the exchange services, which may include selling.
As such, exchange flows can sometimes be bearish for the cryptocurrency. In particular, the massive flows made by whales can exert some noticeable fluctuations in the market.
Just like this huge SOL transfer, the other three transactions mentioned earlier were also exchange inflows. However, they were significantly smaller in scale, averaging $33.2 million.
Two of these transactions also went to Binance, while the third (and most recent) went to Coin base. Interestingly, the address pairs in these two Binance transfers were the same, suggesting that the same whale may have been responsible for them.
With the four exchange inflows, Solana, valued at 265.6 million dollars, has now found its way to the exchanges. This is clearly a notable value, which could impact the price of the asset.
There is no guarantee, however, that any of the whales involved made these transactions for sale; It’s possible they made these changes for some other purpose that isn’t directly relevant to the market.
Although Solana has declined in recent days, the possibility of these whales deciding to leave certainly exists.
SOL Price
After the recent crash that Solana saw, the asset’s price fell to the $174 level.
The price of the asset appears to have gone through some drawdown recently | Source: SOLUSD on TradingView
Featured image by Rod Long on Unsplash.com, chart by TradingView.com
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