On-chain data shows a Solana (SOL) whale has made a large deposit to Binance in the past day, a sign that could be bearish for its price.
A Massive Transaction Has Occurred On The Solana Network In The Past Day
According to data from the cryptocurrency transaction tracker service Whale Alert, a large move has been spotted on the Solana blockchain during the last 24 hours.
The SOL transaction in question involved the movement of 184,241 tokens across the network, worth more than $26 million at the time the transfer was processed.
Moves of such a large scale are typically associated with the whales, who are humongous entities that are considered influential beings on the market exactly because of their ability to move around large amounts.
Thus, moves of this type are worth keeping an eye on, as even if they may not end up having a direct effect on the cryptocurrency’s price, they can still at least provide clues about the sentiment among these large investors.
To determine what the whale may have intended to do with this latest Solana transfer, a look at the address details is needed.
Looks like this SOL transfer required a fee of just $0.3 to go through on the blockchain | Source: Whale Alert
As displayed above, this Solana transaction went from an unknown wallet to an address attached to the cryptocurrency exchange Binance. Unknown wallets refer to addresses that are unaffiliated with any known centralized platform and thus, are likely to be the investors’ personal wallets.
Therefore, it would appear that the whale has shifted coins from their self-custodial wallets into Binance with this transaction. This type of transaction is called an exchange inflow.
Generally, investors make exchange inflows whenever they want to make use of one of the services that these platforms provide, which can include selling. As such, these transfers can prove to be bearish for the SOL price.
Since the exchange inflow in question is of a notable scale, it can naturally have a visible effect on the Solana price, if the whale truly intends to sell with the move.
It now remains to be seen if the cryptocurrency will feel a bearish effect off the back of this transaction or not.
SOL Price
The past 24 hours have been red for the cryptocurrency market and Solana has been no exception. The below chart shows how the recent performance of the coin has looked like.
The price of the asset appears to have gone down over the last few days | Source: SOLUSD on TradingView
Yesterday, Solana had started a surge and had reached the $152 mark, but it wasn’t long before the run had fizzled out, and the coin has since corrected over 5%, coming down to the $145 level.
In terms of weekly returns, SOL currently stands at a negative 8%, which makes it the worst performer among the top 20 cryptocurrencies by market cap. In fact, Polkadot (DOT) and XRP (XRP) are the only other coins to have come up with negative returns for this period.
Featured image from Dall-E, whale-alert.io, chart from TradingView.com
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