Solana‘s SOL token has seen an impressive rise above the $200 level, and data from on-chain data provider Lookonchain reveals a noteworthy development. Accordingly, whales have begun to sell SOL to take profits.
Whales Initiate SOL Sell-Off
Lookonchain reports that a whale investor, identified by the pseudonym “BU6N2Z,” has sold approximately 200,000 SOL worth about $39.85 million on Binance in the last 48 hours. Despite this significant sale, the investor still holds an impressive $323 million worth of SOL in their portfolio.
The increase in whale activity coincides with Solana’s notable price surge from $136.49 to $201 over the past week. This rise, indicating an approximately 40% increase, has propelled Solana’s on-chain transaction volume to unprecedented levels, surpassing the combined total of Ethereum (ETH) and its Layer 2 counterparts.
Furthermore, Solana’s market value has exceeded $90 billion, reinforcing its position as one of the top 200 global companies by market size. This growth has solidified Solana’s increasing dominance in the cryptocurrency market and its emergence as a strong competitor to established players like Ethereum.
The influx of whales selling their assets amid Solana’s rise adds an intriguing dimension to the narrative and shows that even with rising prices, large investors are moving to take profits. As Solana continues to make waves in the cryptocurrency market, attention is focused on how these developments will influence its future trajectory.
Despite the SOL sales by whales, Solana’s fundamentals continue to be strong, with network activity and adoption increasing. The altcoin‘s technology, offering high yields and low transaction fees, is attracting significant interest from both developers and users.
Warnings of a Potential Pullback
Despite the overall positive outlook, analysts warn that whale activity can significantly impact prices, suggesting that the onset of profit-taking could trigger pullbacks in SOL’s value.
According to data from the crypto data and price platform CoinMarketCap, the popular altcoin has seen a 7.73% increase in the last 24 hours, trading just below the $200 threshold at $199.06.
