While Solana price spirals downward, whales are moving sizable amounts of SOL, sparking fears of a selloff. On the flip side, analysts say the move could be a trigger for an accumulation spree amid prolonged bearish sentiments.
A Solana (SOL) whale has transferred 846,613 SOL to an unknown wallet in a single transaction amid falling asset prices. With Solana price hovering around the $150 mark, the transferred assets are valued at a hefty $127 million, spiking SOL’s daily trading volumes.
While the sizable transfer appears to have gone under the radar, investors say the move could have far-reaching consequences for the beleaguered asset.
A majority of traders are viewing the $127 million transfer as preliminary moves for a sell-off given prevailing sentiments. Only a handful of investors see the transfer as an accumulation play ahead of a market breakout.
Onchain data indicates SOL has lost 11% in under 24 hours to settle at the $152 mark. Since the asset reached its peak of $294 at the start of the year, it has shed 49% of its value in less than a month.
SOL’s market capitalization of $75.4 billion manages to keep it among the top cryptocurrencies by valuation. However, underlying metrics remain grim as it plays second fiddle to Ethereum in DEX weekly volumes.
Solana network fees and memecoin activity have also taken a hit in recent weeks while the number of active Solana users fell to its lowest level in five months.
Amid the unsavory metrics for SOL, chances for a break out remain unlikely for the asset. For starters, the Solana price descent has seen it fall below the 50-day and 200-day moving averages, setting the stage for a bearish death cross pattern.
