Mysterious Whale Alert: Over 800,000 SOL Transferred to Coinbase – Price Impact Unclear

Monday, April 1, was filled with surprising events in the market. But one that caught Coin Edition’s attention the most was some activities related to Solana (SOL). According to Whale Alert, four different transactions involved millions of SOLs being sent to Coinbase.

🚨 🚨 202,279 #SOL (39,743,074 USD) transferred from unknown wallet to #Coinbasehttps://t.co/czcIRDtxuw

— Whale Alert (@whale_alert) April 1, 2024

🚨 🚨 201,629 #SOL (39,621,116 USD) transferred from unknown wallet to #Coinbasehttps://t.co/23MXqdQXBh

— Whale Alert (@whale_alert) April 1, 2024

The transactions that happened at about the same time, were over 800,000 SOL. Typically, when transfers like this occur, the intention is to sell. However, an assessment of the market showed that SOL has not felt any impact from selling pressure.

It’s Time to Evade an Upswing

At press time, the token changed hands at $197.15 as it kept swinging sideways. From the 4-hour chart, bears had halted SOL’s attempted move to retest $205. Assuming selling pressure increases, the price of the token might drop further.

Should this be the case, SOL might drop to $187.68. In a highly bearish case without bulls’ interference, the price of the token might drop as low as $171.36. Furthermore, the Relative Strength Index (RSI) turned down at press time.

This decline indicates that buying mometum had decreased and sellers were in control. In addition, the Money Flow Index (MFI) showed that SOL was previously overbought. But at press time, the MFI reading had declined, suggesting that capital had flowed out and the cryptocurrency liquidity was diminishing.

SOL/USD 4-Hour Chart (Source: TradingView)

The indications analyzed above pointed to a likely price decrease. However, it is also important to view the possible price prediction based on things happening in the derivatives market.

Open Interest Decreases

According to data from Coinalyze, SOL’s Open Interest declined. Open Interest is the value of open contracts related to a cryptocurrency in the market. At press time, the crypto analytics platform showed that the Open Interest was $2.60 billion.

The indicator decreases or increases based on net positioning. An increase in the Open Interest suggests a surge in liquidity. Most times, this also means that buyers are aggressive. On the other hand, a decline means the traders are closing their positions and sellers are aggressive.

For SOL, the decline in Open Interest and price was a sign that the value of the token might continue to increase.

Solana Open Interest (Source: Coinalyze)

In the short term, the price of SOL might drop below $190. However, a recovery could occur soon, as the downtrend might become weak. Should this be the situation, the value of SOL might jump toward $210.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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