Are Whales Draining Solana's Value? Another $13 Million in SOL Hits the Exchanges

Summary:
Solana (SOL) has faced significant bearish pressure recently, with whales offloading large amounts of SOL. A notable transaction saw a whale selling 100,000 SOL worth $13.57 million, indicating a lack of confidence in the market's direction. As selling continues, SOL's price has struggled to maintain support levels.

Key Takeaways

Solana's price has remained between $130 and $140 recently, currently sitting at $133.
A whale sold 100,000 SOL, totaling approximately $13.57 million, as part of ongoing profit-taking.
The market shows signs of increased selling activity, suggesting confidence is waning among investors.
Solana's downward price momentum could lead to further losses unless it can reclaim key resistance levels.

Are whales bleeding Solana dry? Another $13 million SOL hits exchanges

Recent Price Action of Solana

After being unable to break through the $146 mark six days ago, Solana has been trading in a tight range between $130 and $140. As of now, the cryptocurrency is priced at $133, reflecting a 1.94% decline on the daily charts. With Solana experiencing prolonged bearish trends, many investors, particularly whales, appear to be exiting their positions.

Whales Offloading Significant Amounts of SOL

Despite the struggles in Solana's price performance, whale activity in the spot market has remained notably high. According to data from CryptoQuant, there have been significant whale orders since November 28. The presence of such large orders often suggests increased participation from whales, whether through buying or selling.

Solana spot average order size
Source: CryptoQuant

On December 5, an on-chain monitor, EmberCN, detected a whale transaction in which 100,000 SOL, valued at $13.57 million, was deposited. This particular whale has been actively taking profits for the past eight months, having initially unlocked its SOL holdings in April. Since then, this address has transferred a total of 615,000 SOL, worth around $107 million, to Binance in multiple transactions.

Whale Deposit to Binance
Source: EmberCN

Even after these significant sales, the whale retains about 733,000 SOL valued at $99.16 million, along with 357,000 SOL earned from staking rewards over the past four and a half years. Continuous offloading by whales typically indicates uncertainty about the market's future direction, prompting them to secure profits and mitigate potential losses.

Exchange data also highlights this uptick in selling activity. As reported by CoinGlass, Solana's Spot Netflow saw a resurgence, turning positive after four consecutive days of negative flow.

Solana Spot Netflow
Source: CoinGlass

At the time of writing, the altcoin’s Netflow stood at $2.66 million, contrasting sharply with the previous day's -$23.5 million, signaling higher outflows from exchanges.

Continued Challenges for SOL?

Solana's price struggles could be attributed to the bearish sentiment from both retail and whale investors, leading to increased selling pressure. This downward momentum has strengthened, putting bears firmly in control of the market.

Recent data shows that Solana’s Directional Movement Index (DMI) has dipped into oversold territory at 16, while the -DI sits at 32.

SOL DMI & FBB
Source: TradingView

When the -DI exceeds the +DI, it indicates strong downward pressure, with buyers being largely absent from the market. This situation leaves the asset vulnerable to further declines. If selling pressure, especially from whales, continues, SOL may sink below the $130 support level, potentially falling to $126. To counteract this bearish trend, buyers need to drive prices up for a daily close above $140. Such a close could strengthen Solana’s position, allowing it to retest the $146 level and aim for the middle band of the Fibonacci Bollinger Bands at $178.