In the recent past, Solana (SOL) has been attracting attention with one of the biggest crypto whales sending close to 300,000 SOL tokens to the Coinbase exchange, estimated to be worth $52.8 million. This has caused panic among many traders due to the fear of a possible sell-off, which would affect the prices of Solana.
With cryptocurrencies, a whale is simply someone or an organization that has a massive pile of even a single coin, and when tokens are sent to an exchange, they are likely going to be sold. In case such a huge quantity is sold simultaneously, the price would come down drastically owing to excess supply.
Price is Stable
The price of Solana did not change significantly even after the colossal transfer. The price of Solana rose to its highest mark of 178.07 after surpassing the previous value of 166.02. It was stabilized at 176.74. This is shocking when compared to the loss of 12.25 percent in the last 24 hours, given the mood in the market.
The level of traders has also not diminished too much, with nearly a 48% jump in the level of trade to 9.47 billion, and this indicates that a lot of traders still hold a SOL and wish to trade the,m as well as the market remains liquid enough to absorb a mass selloff without causing a crash in the price. There may be stable price levels provided that the trading volume is robust in the case that the whale sells.
We’ve Seen This Before
This is not the first time such a large transfer has taken place. Another whale transferred more than 586,000 SOL tokens (worth almost 89 million dollars) to Coinbase on July 7. This time around, the price of Solana fell soon after; therefore, the question that arises in people is obviously whether it would happen again.
But, it is a possibility that this time may differ. The last sale is lower, and the market appears to be better. Institutional interest is increasing in crypto, and the confidence in the market is generally greater than it was a few weeks before. That can smooth out the possible bad effect.
What Might Happen Next?
At this moment, it is unknown whether the whale is actually going to sell the tokens. They may simply be transferring them into Coinbase, doing something else, such as trading them into another asset, or realizing part of the gains over time.
