Solana (SOL) has seen a rally of over 14% over the past day, but exchange deposits from the whales could be a worrying sign for these gains.
Solana Has Observed A Fresh Rally During The Past Day
While Bitcoin has gone stale in the last few days, some altcoins have taken the front seat as they have registered some sharp bullish momentum. Among these decoupled assets is also Solana, which has really blasted off in the past day.
During the last 24 hours, SOL has observed a rally of more than 14%, reaching the $73 level for the first time since early May, as the chart below shows.
The price of SOL has shot up during the past day or so | Source: SOLUSD on TradingView
SOL’s performance during the past day has been the second strongest among the top 30 cryptocurrencies by market cap, with only Cardano (ADA) coming up with better returns.
The coin has also notably outperformed XRP (XRP), its next closest competitor in the market cap list, suggesting that if the cryptocurrency can continue its run, it can close the gap on it and possibly even surpass it to become the fifth largest asset in the sector.
Generally, during rallies like these, some investors give in to the allure of profit-taking and sell their holdings. It would appear that some large entities may be doing just that if blockchain data is anything to go by.
SOL Whales Have Made Exchange Inflows Of 300,000 SOL Today
According to data from the cryptocurrency transaction tracker service Whale Alert, two large transactions have occurred on the Solana blockchain during the last 24 hours.
The first of these transfers involved a movement of 150,000 SOL, worth just under $10.2 million, when the transaction went through on the network. Given the large scale of the move, it’s likely that a whale was behind it.
Here are some more details regarding this Solana whale transfer:
Looks like the transfer only needed a negligible fee of $0.000005 SOL to be possible | Source: Whale Alert
The transaction appeared to go from an unknown wallet (likely the whale’s personal self-custodial address) to a wallet attached to the cryptocurrency exchange Binance.
Investors transfer coins from their wallets to central platforms like these for various purposes, of which selling is a major one. Considering that the transfer has come during a rally, selling may have been the likely reason behind the deposit.
Interestingly, the other whale transaction from today also involved almost the same number of tokens as this transaction, and the address details reveal that the same addresses were, in fact, also associated with this second transfer.
The second large SOL transaction from the past day | Source: Whale Alert
It seems likely that the same whale was behind both of these moves about 13 hours apart. If this humongous holder indeed planned to sell with these deposits, then it’s possible that the SOL rally could encounter some resistance.