A large Solana (SOL) holder, recently unstaked 245,922 SOL tokens worth approximately $45.85 million even as Solana price experienced a slight uptick.
These tokens were subsequently deposited into Binance, one of the world’s largest cryptocurrency exchanges.
The event occurred eight hours ago and has sparked discussions within the cryptocurrency community regarding its potential market consequences.
Whale Transaction Draws Attention to Possible Selling Activity
Whales unstaking SOL tokens and transferring them to Binance have triggered speculations that it could be for selling purposes.
Unstaking tokens is when tokens are no longer staked and therefore stop accumulating rewards and become easily sellable.
These are seen as a build-up to major market activities such as selling since they are large in size.
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Experts believe that if the whale wants to dispose of the SOL tokens, it can put pressure on the market.
The market’s capacity for such a transaction is a function of prevailing demand and market liquidity.
Although there are still no confirmed sales, traders are paying attention to the Binance order book for possible signs of rising sell orders.
The Current State of Solana Price
However, Solana has experienced a slight rise in price even with the whale transaction and is currently trading at $191.74 with a 0.41% uptick in the past 24 hours.
The price ranged from $186 to $192, with the price showing moderate volatility. A rebound from $186 to $192 in the later trade indicates some buying interest, but still, overall trading is lacklustre.
Solana’s market capitalization is currently at $92.75 billion which makes it the sixth biggest cryptocurrency by market capitalization.
The 24-hour trading volume was $3.76 billion, which was 5.23% less than the previous period.
Experts suggest that lower trading volumes suggest that many investors are still waiting for some outcomes before making their moves.
Potential Effects of the Whale Activity on Solana Price
Large token movements by whales often lead to short-term market fluctuations. If the whale’s deposit results in a significant sell-off, Solana’s price could face downward pressure.
The support level has been set at $186 and the resistance level at $192. A breakout above $192 could signal further upward momentum, while a drop below $186 may trigger additional declines.
But Solana has demonstrated strong performance in the last few trading sessions, with buyers coming in to support the important levels of support.
Market attitude is still slightly optimistic. However, the actions of the whale may yet influence the future direction of the market.
Increasing Confidence in Solana ETFs
While the whale transaction raised concerns in the short term, experts still hold a positive view of Solana’s future.
Solana’s price could reach $400 by 2025 as expectations that a U.S. spot Solana ETF will be approved soon increase.
The probability of an approval of a U.S. Solana ETF based on Polymarket, a prediction market, is at 74%.
Current events like the recent approval of Brazil’s first Solana ETF are likely to have an impact on future decisions in the U.S.
If an ETF gets approval it can attract institutional investors in Solana leading to an increase in demand and in turn the price.
