San Francisco, California — A prominent investor in the cryptocurrency Solana (SOL) has recently unstaked and transferred more than 125,000 tokens, valued at approximately $17.64 million, to an exchange after four years of holding. This significant move by the whale comes as SOL has struggled under a descending price trend, dropping from a local peak of $187 to a low of $141 in recent weeks.
Investor sentiment appears to be waning among long-term holders, particularly those who have locked their assets in staking contracts. The whale’s seizing of SOL has raised alarms about potential market instability, as it often signals diminishing confidence in the asset’s future performance. Currently, this investor still retains 1.17 million SOL tokens, worth about $174.17 million, in staking contracts.
Recent analytics show that the trading activity surrounding Solana has undergone noticeable shifts. Following a two-week period of negative netflows, which indicates more tokens being withdrawn than deposited, the situation flipped to positive, suggesting inflows now exceed outflows. Traditionally, such movements can precede heightened selling pressure, yet SOL’s price has shown resilience during this tumultuous time.
Despite a downturn that sent prices spiraling, the altcoin has found some footing over the last several days. Following its dip below $142, SOL has closed higher for two consecutive days. At the time of reporting, the token traded near $152, representing a slight increase of 3.16% over the previous 24 hours. This recovery can be attributed, in part, to demand from smaller investors who have been purchasing the asset at lower prices.
Data reveals that smaller-scale buyers have purchased around 479,000 SOL, reflecting a positive trend where demand seems to surpass supply. This uptick in acquisition among individual investors may counterbalance the selling actions of larger holders, providing some support for the altcoin’s price.
On the technical front, indicators suggest a potential bullish reversal. The Stochastic Relative Strength Index (Stoch RSI) recently displayed a bullish crossover, hinting at renewed momentum. If this upward trajectory persists, analysts speculate that SOL could aim for a recovery back toward the $165 mark.
However, the outlook remains cautious. Should additional whale selling occur, it might pressure SOL back down toward its crucial support level of $140. The unfolding dynamics in the Solana market indicate a complex interplay between large and small investors, impacting overall price movement and trading strategies.
