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Solana Whale Unstakes 106,213 SOL: Major Dump Incoming?

Published 14/09/2024, 03:50 am
Solana Whale Unstakes 106,213 SOL: Major Dump Incoming?
SOL/USD
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The News Crypto -

  • Solana whale unstakes 106,213 SOL ($14.3M (NYSE:MMM)) and deposits on Binance.
  • Increased market volatility reflected in widening Bollinger Bands.
  • Technical indicators suggest potential downtrend, with $110 as bearish target and $160.90 as bullish target.

A prominent Solana whale unstaked a substantial amount of SOL tokens and transferred them to Binance. This move, likely motivated by profit-taking intentions, comes amidst intensifying volatility in the Solana market and growing bearish sentiment surrounding the altcoin.

On-chain analyst Lookonchain reported early Friday that a Solana whale had unstaked 106,213 SOL, valued at approximately $14.3 million, and deposited the tokens into Binance.

Such large-scale transfers to exchanges often serve as precursors to significant price movements, typically signaling an impending sell-off that could impact the asset’s market valuation.

Moreover, the timing of this whale’s action coincides with a noticeable spike in SOL market volatility. Also, Bollinger Bands, a key technical indicator, have widened considerably over the past month. Reflecting increased price fluctuations and market uncertainty. This heightened volatility may have prompted the whale’s decision to unstake and potentially liquidate their position.

Solana Derivative Traders Stay Cautious following Whale’s Move

Furthermore, in response to the whale’s maneuver, derivatives traders have shown signs of caution. The past 24 hours have seen a 40% drop in SOL’s derivatives trading volume, accompanied by a 2% decline in open interest.

However, those remaining active in the market appear to be leaning bullish, as evidenced by the positive funding rate of 0.0049%, suggesting a preference for long positions despite the overall bearish sentiment.

Technical indicators paint a challenging picture for SOL’s short-term prospects. The Parabolic Stop and Reverse (SAR) indicator displays bearish signals, with its dots positioned above the current price level. This configuration typically suggests an impending downtrend, as the SAR is designed to track trend direction and potential reversal points.

Further compounding the bearish outlook, Solana’s Directional Movement Index (DMI) shows the negative directional indicator (-DI) outpacing its positive counterpart (+DI). This arrangement indicates stronger negative momentum, reinforcing the notion that SOL’s market trend remains in a downward trajectory.

This content was originally published on The News Crypto

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