Solana Whale Sell-Offs Threaten $1,000 Dream, But Fundamentals Remain Strong

Source Newsbtc

A Solana (SOL) whale has been offloading a significant amount of its holdings for a while, a move that could significantly impact Solana’s price and the projected move to $1,000. Solana’s fundamentals remain strong amid these sell-offs, suggesting that SOL could still enjoy a significant rally. 

Solana Whale Has Sold $86 Million Worth Of SOL This Year

The on-chain analytics platform Lookonchain revealed in an X (formerly Twitter) post a Solana whale that has sold 594,000 SOL ($86 million) this year. Since January 15, this whale is said to have deposited its Solana holdings to Coinbase, Binance, and OKX, averaging one sale weekly. The whale’s last sale came on August 12, when it sold off 5,000 SOL ($720,000). 

Solana 1

On-chain data further shows that this whale only has about 0.1 SOL remaining in its wallet address, meaning that the selling pressure from this particular investor is over. However, the Solana meme coin launchpad Pump.fun is another whale the Solana community might have to worry about. 

Lookonchain revealed in another X post that the Pump.fun fee account has sold 222,073 SOL for 35.54 million USDC at an average price of $160 in the past three months. Pump.fun still holds a significant amount of SOL that can put massive selling pressure on the token’s price, as on-chain data shows that the fee account still holds 274,583 SOL ($39.7 million).

Solana 2

These Solana whales offloading their tokens is undoubtedly worrisome, especially considering how this sell pressure could hinder Solana’s projected rise to $1,000. Crypto analysts like Ali Martinez have predicted that SOL will reach $1,000 in this bull run. The analyst has gone as far as drawing similarities between Solana’s current price action and the 2021 bull run to prove that the token can reach such ambitious heights.

Crypto analyst Crypto Kaleo also claimed that $1,000 is a reasonable target for Solana if the token can replicate a similar growth to the one Ethereum enjoyed in the last cycle when it hit an all-time high (ATH) of $4,800. 

Solana’s Strong Fundamentals Still Indicate A Significant Price Rally

Solana’s strong fundamentals still suggest that SOL will likely enjoy a significant rally before the crypto token peaks in this bull run, although it remains to be seen if it can reach as high as $1,000. One of these fundamentals is the potential launch of a Spot Solana ETF in the United States. The approval of such a fund would lead to new money flowing into the Solana ecosystem.

Solana 3

Meanwhile, Solana continues to compete with Ethereum in terms of decentralized exchange (DEX) volume. Data from DeFiLlama shows that $10.126 billion has been traded on Ethereum’s DEXs over the last seven days, while $8.667 billion has been traded on Solana DEXs during this period. 

Solana price chart from Tradingview.com
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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