Solana (SOL) Analysis: The Impact of Whale Selling Activity
If you are interested in Solana (SOL), it is essential to understand the constant selling activities of whales and institutions that could potentially affect its price performance in the market. Solana, a highly funded cryptocurrency by venture capitalists (VCs) through private investment rounds, has seen significant selling pressure from large holders.
This year, an entity identified by the on-chain analyst behind Lookonchain has been consistently selling Solana tokens. With 695,000 SOL worth $99.50 million sold in 2024, this whale or institution has been selling an average of 19,306 SOL per week, amounting to $2.76 million.
- The whale still holds 1.88 million SOL staked in Solana’s protocol, valued at $255.89 million.
Understanding Solana’s Price Performance
Solana (SOL) has experienced a 32.15% increase year-to-date, currently trading at $133.91 within a six-month consolidation range. It is crucial for Solana to maintain support above the current level to sustain the gains made this year.
However, the resistance within the range is showing a downtrend with lower highs, indicating weak momentum. The selling pressure from large holders coupled with Solana’s high supply inflation could influence its price in the market.
- For SOL to preserve its gains, an increase in demand within the cryptocurrency market is crucial.
The Initial Distribution and Funding of Solana
Data retrieved from CryptoRank highlights Solana’s initial distribution and funding arrangements. The Foundation initially controlled 56.5% of SOL’s supply for treasury, team payments, and strategic community allocations.
- Private investors received 25.6% of the supply through seed investment and funding rounds.
- Five disclosed fundraising rounds between April 2018 and January 2020, along with an undisclosed funding round in 2021, raised a total of $334 million for SOL.
Closely Monitoring Solana’s Price Performance
As an investor in SOL, it is crucial to keep a close watch on the selling activities of whales and institutions as they can impact the price performance of Solana in the market. Understanding the tokenomics and supply pressures of a project before investing is essential for making informed decisions.
SOL’s ongoing selling activities and high-potential dumps underscore the need for vigilance among Solana investors to anticipate and navigate potential fluctuations in price performance.
Hot Take: Stay Informed to Navigate Solana’s Market Movements
As a crypto investor, staying informed about the selling activities of whales and institutions in the Solana market is key to anticipating and adapting to potential price fluctuations. With a solid understanding of Solana’s tokenomics and supply pressures, you can make informed decisions to navigate the market effectively.
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