Solana Whale Transfers $68 Million in SOL to Binance: Is a Sell-Off Imminent?

Market Overview

Today, on June 18, 2024, the overall cryptocurrency market is experiencing a massive price drop, affecting top assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Amidst this price drop, blockchain-based transaction tracker Whale Alert made a post on X, identifying that a Solana whale moved a massive 500k SOL worth $68.05 million to the world’s biggest cryptocurrency exchange, Binance.

Whale Moves $68.05 Million of SOL to Binance

This movement of $68.05 million worth of SOL sparks fear in this bearish market. Additionally, there is speculation that this SOL transfer from wallet to Binance might be a potential sell-off. This comes at a time when Solana is near its crucial 200 EMA (Exponential Moving Average) and close to a support level of $125.

However, the potential reason for this massive SOL transfer might be the Open Interest (OI) value, which has dropped by 10%, signaling a lack of interest from investors and traders in this struggling market. Additionally, data from Defillama indicates a bearish signal for the last few days as the Total Value Locked (TVL) has dropped by nearly 8%, which is high compared to other top blockchains. In the last month, the TVL value has dropped by 13%, which might contribute to this bearish sentiment for Solana.

Solana Price-Performance Analysis

With all these bearish data, SOL is currently trading near $135, experiencing a 6% price drop in the last 24 hours. Intraday, it also reached a low of $127.7. Over a longer period, in the last 7 days, SOL has experienced a price drop of nearly 12%, while in the last 30 days, it has dropped by 20%.

Despite this poor performance, Solana’s 24-hour trading volume has surged by 101%, equivalent to $3.5 billion, according to data from Coinmarketcap. This massive surge in trading volume highlights strong participation from investors and traders in Solana.

According to expert technical analysis:

• Solana is bullish on a higher time frame as it is still trading above its 200 EMA.
• On a smaller time frame, it is bearish as it is below the 50 EMA.

Looking at the Solana chart on a 4-hour time frame, it appears bearish as the chart has formed a bearish channel pattern, making lower highs and lower lows. In the coming days, there is also a possibility that it may reach the $127 level.