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A whale address recently moved 11 million Solana (SOL) worth $1.57 billion as SOL dropped below $146, stirring market speculation about the potential motives behind the move.
According to a disclosure from whale-tracking resource Whale Alert, in the past 24 hours a huge transfer occurred on the Solana blockchain where over 11 million SOL tokens, worth about $1.57 billion at the current market rate, were transferred.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 11,000,000 #SOL (1,565,733,797 USD) transferred from unknown wallet to unknown new wallethttps://t.co/ao86Kjdnaz
— Whale Alert (@whale_alert) May 8, 2024
The transaction occurred between unidentified addresses at 23:58 UTC on May 8, 2024. Subsequently, the crypto market is buzzing with speculation about the implications of the movement, as it coincides with a persistent downturn in the Solana and broader crypto market.
The enigmatic nature of the transaction has set off much talk about the reasons behind the movement, including strategic investment manoeuvres, consolidation of funds for improved security or operational flexibility.
Interestingly, Whale Alert called attention to three similar whale movements earlier this month, with 11 million SOL moved on May 1. Three days later, the market witnessed the transfer of 11.029 million tokens on May 4, and another transaction involving 11 million SOL that day.
Solana Faces Price Turbulence
The latest movement comes as Solana experiences massive volatility. On the day of the transaction, SOL fell below $146 after the bulls failed to take out the sellers located at the resistance around the $160 mark. As a result, Solana dropped 9% in just a span of 48 hours.
Despite the slumping price, the market remains lively on Solana, with a day record of 24-hour trade volume amounting to $2.7 billion and a market capitalization of over $64 billion.
Following this transaction, the price of SOL has been under scrutiny. The crypto has managed a 10.43% increase over the past week, outperforming the overall crypto market which has risen by 2.00%.
Technical analysis indicates a neutral market condition with the Money Flow Index (MFI) at 51.90. This tool is crucial for assessing buying and selling pressure, suggesting that the market is neither overbought nor oversold. Additionally, key support and resistance levels have been identified around 140 USDT and 148 USDT.