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

Scott Matherson

10 months ago

3 mins read

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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).

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).

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.

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 — SOL price drops to $144 | Source: SOLUSDT on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

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