Solana Bearish Signal: $22 Million In SOL Enters Coinbase

Keshav Verma

2 years ago

3 mins read

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Data shows around $22.1 million in SOL has been deposited into the Coinbase exchange, a sign that may be bearish for the value of Solana.

Solana Whale Transfers $22.1 Million In SOL To Coinbase

According to data from the cryptocurrency transaction tracker service Whale Alert, a large transaction has been spotted on the Solana blockchain during the past day.

The transfer in question saw the movement of about 900,000 SOL on the network, worth about $22.1 million at the time the transaction went through. As the amount involved here is quite large, it’s likely that a whale entity was behind this transfer.

Movements of the whales can sometimes have noticeable impacts on the market due to the sheer scale of the coins involved in them, so they can be something to watch out for.

As for exactly how a whale transfer would influence the price of the cryptocurrency, though, it depends on what the sender of the transaction intended to do with it.

Here are some additional details of the latest Solana whale transfer that may shed some light on the purpose behind it:

Looks like this massive transfer only needed a fee of 0.000019 SOL to be possible | Source: Whale Alert

As you can see above, the sending address in the case of this Solana transaction was an unknown wallet, meaning that it was an address unaffiliated with any known centralized platform (like an exchange). Such unknown wallets are generally investors’ personal wallets.

The receiving address, on the other hand, was one attached to the cryptocurrency exchange Coinbase. Transfers like these where coins move from personal wallets to exchange wallets are called exchange inflows.

Since one of the main reasons why investors may deposit their assets to these platforms is for selling-related purposes, exchange inflows can have bearish consequences for the price.

In the present case, as the transaction is coming from a whale and involves a significant movement of tokens to an exchange, the price may face some visible decline in the near term.

The cryptocurrency’s price has in fact already gone down a bit since the transaction has taken place, but it’s currently unclear whether the drawdown has come as a result of this transfer or not.

Sometimes, investors deposit their coins to exchanges only so that they can be prepared in advance if an ideal future exit opportunity comes up and thus, don’t immediately pull the trigger on selling them right after the transaction goes through. In such cases, the bearish effect, if any, naturally comes after a delay.

It’s also yet uncertain whether the whale truly intended to sell with this transfer, or if it was made for some other purpose entirely. In the latter scenario, the price would feel a neutral effect from this move.

SOL Price

At the time of writing, Solana is trading around $24.4, up 19% in the last week.

SOL seems to have slid down during the past day | Source: SOLUSD on TradingView

Featured image from GuerrillaBuzz on Unsplash.com, chart from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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