Recently, a whale with a big portfolio made a major Solana (SOL) deposit from the Binance exchange to a personal wallet. This whale activity took place as large SOL holders showed interest in staking again. Technical indicators suggest that the price of Solana may be on the rise.
Whale Withdraws 206,111 SOL to Stake $36 Million
SolScan noted that a whale has been transferring 206,111 SOL which is nearly $36 million from Binance to personal wallet within nine days. A
ccording to Lookonchain, a blockchain analysis platform, this transfer is part of a sequence of transactions made by the whale, who seems to be stacking SOL in preparation for staking.
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Whales continue to buy $SOL and stake it!
AA21…VxH9 has withdrawn 206,111 $SOL($36M) from #Binance and staked it in the past 9 days.https://t.co/1vpVWG5SSK pic.twitter.com/42EAFnhQ7D
— Lookonchain (@lookonchain) October 31, 2024
This decision to stake rather than keeping a cryptocurrency on an exchange is usually interpreted as a positive vote for the growth of the asset. Staking Solana means that the token holders can earn rewards at the same time.
They cannot sell these tokens in the short time. Looking at Lookonchain analysis, the whale portfolio has a balance of approximately $29 million. A large portion has been invested in Marinade Staked SOL (mSOL).
Also, the staking account of this wallet currently holds 38,043 SOL which is worth more than $6.6M. This transfer by this particular whale is in line with what the top Solana holders have been doing throughout 2024. They have been accumulating and staking SOL.
In September, another whale purchased 34,807 SOL which is equivalent to roughly $4.52 million and has transferred a total of 207,000 SOL to self-custody since February.
Bullish Flag Pattern Signals Potential Continuation of Uptrend for Solana
Whale’s staking comes at a time when technical analysis indicates that Solana is still in the bullish trend. SOL price initially found resistance at the $200 mark earlier this year and has since ranged between $125 and $180.
This price action has formed a “bullish flag pattern.” It indicates that the crypto is set to experience a resurgence in the upward trend. Xanrox crypto analyst has noted that this bullish flag may be an indication that SOL is about to rise further.
This consolidation assists the market to trap the profit-taking while at the same preparing for more upside movements. The return of the whale interest in SOL, especially when it comes to staking, supports this view.
In the last week alone, SOL price has recovered from a short-term consolidation, regaining the $183 per coin after falling to as low as $170. This recent bounce also strengthens the view of the bullish pattern.
Further technical analysis from Xanrox identifies two key targets based on Fibonacci levels: the 0.382 level at $383.39 and the 0.618 level at $829.17. If SOL is to rise to these levels, then the potential profits would stand at 372.77%.
These Fibonacci targets correspond with the Elliott Wave Theory which divides market trends into five waves. According to Xanrox, SOL price has already had wave 3 which is often a powerful movement and now the price is in wave 5.
If wave 5 develops in the expected manner, the price rises could substantially increase. At the time of writing, Solana (SOL) is at $170.06, which is quite a drop of 2.56% within the last one day. The cryptocurrency trading volume has been today at $2.62 billion.
