- A Solana whale sold $84M in SOL using a dollar-cost averaging strategy to avoid market shocks.
- An Ethereum whale offloaded $154M in ETH, mirroring the Solana whale’s gradual sale approach.
- The strategic sales could lead to prolonged price pressures in the cryptocurrency market.
A Solana whale sold $84 million worth of SOL tokens this year, posing concerns about the dynamics of the market going forward. The investor recently deposited $2.8 million worth of SOL into multiple exchanges, bringing the total amount sold in 2023 to about 594,000 SOL.
Concurrently, the investor has been selling tokens consistently since January. The whale uses a dollar-cost averaging (DCA) strategy that entails incremental sales as opposed to a single, large transaction. This approach seeks to reduce the risks brought on by price volatility, which is a key element in the cryptocurrency market.
Steady Sales Reflect Cautious Strategy
Notably, the whale is taking a cautious stance in the highly volatile cryptocurrency market by choosing to sell SOL tokens using the DCA strategy. The weekly sales, which have been going on since January 15, demonstrate the investor’s goal to stay away from the potential pitfalls of a bulk sale, which might cause abrupt changes in the market.
Seemingly, the whale is aiming for a more stable exit by spreading out the sales, which lowers the possibility of starting a sudden and severe price decline. Given the substantial amount of SOL involved, this strategy is notable and emphasizes the investor’s attention to long-term market effects.
Ethereum Whale Follows Similar Pattern
Solana whale’s behavior is similar to that of another significant Ethereum market investor. Since July 8, an Ethereum whale has been selling tokens. During the initial coin offering (ICO), the whale received one million Ethereum. At an average price of $3,176 per token, this whale has deposited $154 million worth of ETH into the OKX exchange.
Approaches taken by these two whales point to a larger tendency among major investors to reduce risk by selling assets gradually as opposed to making large, abrupt transactions that might cause the market to become unstable.
Market Implications and Future Prospects
Continuous sales by the whales may have a big impact on the cryptocurrency market as a whole. Although the DCA strategy lessens sudden market shocks, it may indicate that big investors are becoming more cautious. Should additional whales follow suit, there may be a consistent withdrawal of capital from the market, which might result in extended price pressure.
However, the recent acquisition of 5,000 ETH by a different investor indicates that some people still think that holding onto their assets will be beneficial in the long run. The divergent behaviors exhibited by these prominent entities underscore the intricate dynamics functioning within the cryptocurrency domain.
The post Solana Whale Initiates Massive $84M Dump: Potential Impact on Cryptocurrency appeared first on Crypto News Land.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed