A sizable SOL transfer has been seen on the blockchain over the past day, according to information from the cryptocurrency transaction tracker service Whale Alert. The transaction involved the movement of a total of 537,352 tokens, worth about $10.2 million, when the transfer was executed.
Since then, however, the cryptocurrency price has seen some further rise, so the same stack of coins is worth upwards of $11.1 million at the latest exchange rate.
As the amount involved here is large, the sender behind this transfer was likely a single whale or an entity of multiple large investors. Due to the enormous size of the coins involved, the movements of these enormous holders can occasionally have a noticeable impact on the market.
This is why transactions from whales may be something to be wary of. In what way any transfer of this kind would affect the price depends on the exact intent the whale had in mind while making it.
Here are some additional details regarding the latest Solana whale transaction that may shed some light on the reason behind it.
As was previously mentioned, an unidentified wallet was used as the sending address in this Solana whale transaction. These addresses are unconnected to any established centralized platform, so they are probably remote personal wallets.
The recipient, on the other hand, was a wallet linked to Coinbase, a centralized cryptocurrency exchange. Transactions like these, where coins move from personal wallets to exchange platforms, are called “exchange inflows.”
The intention of selling is one of the main motives for which an investor might deposit their coins to a website like Coinbase. Consequently, inflows may lower the price.
Given that the Solana exchange inflow in this instance was quite significant, the asset’s value might be visibly affected in a bearish way. That is, of course, presuming the whale actually intends to sell the coins with this move.
However, given that the transfer occurred during Solana’s recent rapid uptrend—the stock has already increased 16% over the past 24 hours—there does seem to be a chance that the whale plans to use the deposit to capitalize on this lucrative opportunity.
Despite this, Solana hasn’t demonstrated a significant downward trend since the transaction. Rather, the price has only increased further, implying that the whale’s selling pressure, if any, may have already been outweighed by the buying pressure.
The whale may have made the deposit with the intention of selling, but they may not have yet made the final purchase, which is a possibility that cannot be ruled out. In such a case, the bearish effect might take some time to manifest.
