Data shows the Solana whale has deposited $10.2 million in SOL to crypto exchange Coinbase as the asset’s price rose 16% today.
Solana Whale Transfers $10.2 Million in SOL to Coinbase
As data from the cryptocurrency transaction tracker service Beware the Pope, a large SOL transfer has been seen on the block for the past few days. The transaction involved a total movement of 537,352 tokens, worth approximately $10.2 million, when the transfer was executed.
Since then, however, the price of the digital currency has rebounded, with the same stack of coins worth $11.1 million at the latest exchange rate.
Because the amount involved here is large, the sender behind this transfer may be a single whale or an entity of several large investors. Sometimes, the movements of these humongous holders can have a noticeable effect on the market due to the large size of the coins.
For this reason, transactions from whales can be something to watch out for. In what way this type of transfer will affect the price depends on the exact intention the Pope had in mind when making it.
Here are some additional details about Solana’s latest whale transaction that may shed some light on why:
Looks like this massive movement of coins only required a fee of 0.000019 SOL to be possible | Source: Whale Alert
As shown above, the sending address in this Solana whale transaction case is an unknown wallet. The address is not tied to any known centralized platform, meaning it will be a private off-site wallet.
On the other hand, the receiver is a wallet attached to Coinbase, a centralized cryptocurrency exchange. Transactions like this, where coins move from personal wallets to exchange platforms, are called “exchange inflows.”
One of the main reasons why investors deposit their coins into a platform like Coinbase is for related purposes. For this reason, inflows can damage prices.
Since, in the current case, the inflow of the Solana exchange is quite large, it can cause a visible bearish effect on the value of the asset. It is only, of course, assuming that the pope does not want to sell coins with this move.
However, considering that the transfer has come at a time when Solana is enjoying a rapid rise, having risen 16% in the past 24 hours, there seems to be a fair chance that the pope wants to cash in on this lucrative opportunity with a deposit.
However, Solana has not shown a significant downward trend since the transaction took place. However, the price has only risen further, which means that the whale’s selling pressure, if any, may have already exceeded the buying pressure.
But one possibility that cannot be discounted is that the pope has also made a deposit with selling as a goal in mind, but they have not pulled the trigger. In such a scenario, the bearish effect may appear with a delay.
The price of SOL Kab
At the time of writing, Solana’s price is trading around $20.46, down 2% over the past week.
SOL has rapidly risen in the past day | Source: SOLUSD on TradingView
Featured images from Todd Cravens on Unsplash.com, charts from TradingView.com