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A major Solana whale, potentially an institutional entity, has been consistently liquidating its holdings throughout 2024, according to Lookonchain.
Since January 1, this whale has sold 695,000 $SOL, valued at $99.5 million. This steady selling activity reflects an average rate of 19,306 $SOL, or $2.76 million, per week.
Despite these substantial sales, the entity retains a significant position in Solana, currently holding 1.88 million $SOL, valued at approximately $255.89 million, staked.
Ongoing Transfers and Staking Activities
The whale’s recent transactions include notable withdrawal transfers, such as 7,500 $SOL, 12,500 $SOL, and several transfers of 10,000 $SOL. These movements suggest a disciplined approach to managing its Solana holdings.
Additionally, the whale has been actively withdrawing staking rewards, evidenced by the “WITHDRAW STAKE” actions, with amounts like 20,000 $SOL being withdrawn in separate instances.
Speculation Within the Community
The crypto community has been abuzz with speculation regarding the whale’s motives and the potential impact on Solana’s market performance.
Notably, some commenters have voiced concerns that these large sell-offs could contribute to bearish pressure on $SOL. One observer noted that the whale might “send up hard again, just taking profits to recycle back,” suggesting a potential strategy of profit-taking followed by reinvestment.
Another commenter expressed concern about the broader market implications, stating that such sales could lead to a downturn yet recognizing that the whale still holds a significant stake in Solana.
Recent Solana Market Performance
Solana’s market performance has seen a decline in recent months. The Crypto Basic recently highlighted that Solana’s value has dropped by 25.91% compared to XRP over the past four months.
This trend is further evidenced by the monthly candlestick patterns and the Relative Strength Index (RSI), which currently hovers around the 60-70 range, indicating potential bearish divergence.
Analysts, including Alan Santana, have revised their forecasts, predicting a potential decline to $55, with key Fibonacci retracement levels at $137.03 and $58.82 being closely watched as critical support zones.