Whale-driven selloffs have begun putting massive pressure on Solana (SOL), as funds shift to memecoins.
Solana’s price has been under pressure in the last 24 hours, partly fueled by whale-driven selloffs. This decline coincided with a shift of significant funds into memecoins. Market data indicates that whales have started liquidating SOL positions while actively buying into newer meme-based tokens.
Large-Scale SOL Liquidations
For instance, a major whale transaction unfolded recently, beginning with the creation of a new wallet that withdrew 32,695 SOL—equivalent to $5.46 million—from Binance. Instead of holding SOL, this whale opted to channel most of these funds into memecoins.
Crazy buying!
Someone created a new wallet and withdrew 32,695 $SOL($5.46M) from #Binance to buy #MEMEcoins!
Spent 18,000 $SOL($3M) to buy 6.95M $GOAT($3.39M) at $0.43.
Spent 11,750 $SOL($1.96M) to buy 31.71M $GIGA($2.08M) at $0.062.
Spent 2,900 $SOL($484K) to buy 1.98M… pic.twitter.com/acI8HX0SuR
— Lookonchain (@lookonchain) October 23, 2024
Specifically, the whale invested 18,000 SOL (worth $3 million) into purchasing 6.95 million GOAT tokens, with each token priced at $0.43. Furthermore, 11,750 SOL ($1.96 million) was converted into 31.71 million GIGA tokens at $0.062 per unit.
Further, the investor used 2,900 SOL, worth around $484,000, to procure 1.98 million FWOG tokens at $0.24 each.
The account now holds 44.93 SOL, valued at approximately $7,418.06, alongside 11 tokens with a significantly higher total value of about $6,367,080.
Solana’s Surging Liquidations
This trend of selling Solana is not isolated, particularly in recent weeks. In a separate report, Pump.fun, a platform facilitating memecoin launches on Solana, capitalized on current market conditions by selling 40,000 SOL.
Pump.fun has accumulated a total of 969,945 SOL in fees, estimated at around $162 million. Notably, the platform has liquidated about 56% of its earnings, maintaining a strategy to periodically convert holdings to profits.
Notably, it executed the latest sale at an average price of $156.40 per SOL, marking the transactions among the most lucrative of its kind on Kraken. The steady profit realization brings up concerns of a rise in supply.
From Accumulation to Timely Exits
Elsewhere, data from October 21 reveals another significant whale activity, with the sale of 22,726 SOL worth $3.86 million. This whale’s trading behavior has typically featured buying SOL during low-price periods and selling at peaks.
At the time of the report, the whale held 20,000 SOL, valued at $3.33 million, while cumulative profits from prior trades had exceeded $2.5 million. The trading history includes early uptrend accumulations between November and March, with initial purchases of 6,187 SOL, followed by smaller acquisitions of 3,399 and 259 SOL.
Mid-year volatility spurred additional buys of 2,300 SOL at lower prices, followed by progressive selloffs as prices rebounded.
