Whale Pulls $14.8 Million Solana From Binance: What Is Means For SOL?

Despite price decline threats facing Solana lately, the altcoin is gaining interest from crypto users. Today, Lookonchain spotted a newly created wallet that withdrew huge amounts of SOL tokens from an exchange.

A newly created wallet withdrew 87,328 $SOL($14.8M) from #Binance in the past 2 days and staked it.https://t.co/ZzuUdAC6W8 pic.twitter.com/HUBZKTKgvn

Whale purchases 87,328 Solana

According to data reported by Lookonchain, the whale withdrew 87,328 Solana worth $14.8 million from Binance in the past two days. The whale then went ahead and staked all the tokens.

Such a significant asset withdrawal from an exchange signifies that whales are acquiring Solana. These accumulations could soon develop buying pressure and push the price up. Also, this withdrawal indicates the right time to buy SOL when prices are currently down.

Solana price updates

Despite this notable transaction, SOL’s price remains unchanged. The asset has been struggling over the past month, which aligns with the recent drop in the wider digital asset market amid economic uncertainties.

The asset’s price is currently standing at $169.57 after seeing an increase of 2.4% over the past 24 hours. However, its price has been down 34.7% over the past 30 days. This bearish market sentiment and prolonged price downsides have been attracting significant interest from derivative traders.

Data from Coinalyze shows that SOL’s Open interest (OI) has jumped to a high of $2.949 billion. Normally, an increase in Open Interest indicates that new funds drawing in and speculative interest is increasing. A decrease shows capital outflow from the market. The current surge in SOL’s Open interest means that funds are moving into Solana’s contracts, likely paving the way for a further price increase.  

The Sharpe ratio is another important metric showing SOL’s potential. This tool gauges an asset’s risk-adjusted returns. A low (or negative) Sharp ratio means that the risk involved outweighs potential returns. On the other hand, a high ratio shows that gains exceed related risks. A recent Messari data indicated that SOL’s Sharp ratio has surged to 0.49, suggesting significant potential for returns at current prices. This metric signals that traders acquiring Solana could reap returns at the current price, particularly as the market sentiment improves.