A major cryptocurrency investor, commonly known as a “whale,” has liquidated 108,688 Solana (SOL) tokens at a significant loss of $7.48 million.
The sale occurred at a price of $112.3 per token, close to the lowest trading price of the day.
According to Lookonchain, despite generating $12.2 million in USDC from the transaction, the whale initially purchased the tokens 11 months ago when Solana was priced at $181 per token.Â
The translates to a staggering 37.9% depreciation in value, underscoring the challenges of navigating the volatile cryptocurrency market.
The move has raised concerns among investors about Solana’s price trajectory and broader market sentiment.
Solana Faces Price Decline as Bearish Sentiment Persists
Solana (SOL) has been experiencing a downward price trend, currently trading at $124.06. The token has dropped 3.21% in the last 24 hours and is down 9.89% over the past week.
Despite this dip, Solana remains a major player in the cryptocurrency market, maintaining a 24-hour trading volume exceeding $7.1 billion.
However, bearish sentiment continues to loom over the asset, driven by macroeconomic uncertainties, liquidity shifts, and broader market corrections.
As investors assess their positions, some worry that further sell-offs could deepen Solana’s decline, while others see an opportunity to buy at lower prices.
Whale Sell-Off Sparks Debate on Market Timing and Strategy
The decision to sell a large amount of SOL at a near-daily low has led to speculation about the whale’s strategy and timing.
Some analysts suggest that the investor may have sold due to panic or an urgent need for liquidity, while others believe they could be anticipating further declines.
Large-scale liquidations often trigger increased volatility, influencing sentiment and potentially leading to additional price corrections.
The key question remains whether other major holders will follow suit, further driving selling pressure on Solana or if the market will stabilize in the near term.
Solana’s Long-Term Prospects Amid Price Volatility
Despite its recent price struggles, Solana remains one of the most significant blockchain networks, with a current market capitalization exceeding $63.18 billion.
Known for its high-speed transactions and growing developer ecosystem, the blockchain continues to attract users and projects.
While short-term fluctuations create uncertainty, long-term investors may see this price decline as an opportunity to accumulate more SOL at a discount.
However, the broader market direction, institutional interest, and macroeconomic conditions will play a crucial role in determining whether Solana can regain its bullish momentum.
Solana’s Network Activity Declines as Transaction Fees Plummet
Beyond price volatility, Solana has also seen a sharp decline in network activity. On March 9, Solana’s daily transaction fees dropped to $648,000, a significant plunge from the $33 million recorded on January 19.Â
Additionally, the transaction failure rate has risen to 41%, raising concerns about network stability.
Meanwhile, some investors continue to profit from Solana despite its price fluctuations. One investor recently made a $4.5 million profit after selling 96,155 SOL on Binance following a year-long staking period.Â
However, the overall market remains on edge, with selling pressure and declining network usage potentially impacting Solana’s long-term performance.
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