Why Did The Solana (SOL) Price Jump Today?
May 05 2024 - 11:30AM
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Solana (SOL) is currently up by 4% after jumping from $142 to $148
in the past 24 hours. Interestingly, Solana has made a 23% gain
from $119.56 since May 1 and could hold on to sustain this price
increase steadily for the rest of the month. On-chain data has
revealed behind the scenes that some whales are accumulating and
transferring SOL tokens which reflects some intuition of
bullishness surrounding the cryptocurrency. Related Reading:
Whales Dive In, But Dogecoin Price Sinks 20%: What’s Going On?
Particularly, on-chain data from whale transaction tracker Whale
Alert has revealed the movement of 267,077 SOL worth $38.6 million
from crypto exchange Binance into an unknown wallet in the past 24
hours. Another notable transfer was the movement of 11 million SOL
worth $1.6 billion from a private wallet address to another private
wallet address. 🚨 🚨 267,077 #SOL (38,637,899 USD) transferred from
#Binance to unknown wallethttps://t.co/ggx8BMqNhj — Whale Alert
(@whale_alert) May 4, 2024 Solana Whale Movement Whale transfers
are very common in the crypto industry. They are of different types
and they generally tend to shift the sentiment among crypto
traders. Whale transfers from exchanges into private addresses
could indicate whales are holding onto their assets in anticipation
of a price surge. On the other hand, transfers from private wallets
into crypto exchanges most likely mean a selloff, which could
increase selling pressure on these exchanges. A third type of whale
transfer is between two private wallets, which could be for a
various number of reasons. The recent transfer of 11 million SOL
falls into the third category of whale movement. A further look
into on-chain transaction data shows that the transfer was made
between two stake addresses. Solana is currently trading at
$145.94. Chart: TradingView Consequently, the tokens are locked up
and inactive at the moment. As of now, their movement is likely
going to have little to no effect on the price of Solana. 🚨 🚨
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 11,000,000 #SOL (1,624,618,110 USD) transferred
from unknown wallet to unknown new wallethttps://t.co/pEVupwwe5w —
Whale Alert (@whale_alert) May 4, 2024 Whale Accumulates Solana On
the other hand, private wallet “8NWAHM” has been accumulating SOL
in the past 24 hours. While Whale Alert only noted an interesting
transfer of 267,077 SOL worth $38.6 million into the address, a
closer look into this wallet address shows this is the second major
inflow into the address in the past 24 hours. In an earlier
transaction, 49,999 SOL worth $7.23 million made their way from
crypto exchange Binance into the wallet address. Related
Reading: Is MATIC Poised For Takeoff? Key Area Breaks Records,
Fueling Bullish Outlook This whale seems to be positioning itself
for a price surge in the coming weeks, and the accumulation has, in
turn, contributed to buying pressure for SOL. At the time of
writing, Solana is trading at $145. Despite the 24-hour price
gains, Solana is still experiencing a 20% correction in a 30-day
timeframe. However, the cryptocurrency could continue this price
uptick and eventually break above $200 again in May. Featured
image from Pixabay, chart from TradingView
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