Analysts name the likely reason for Solana’s significant drop

According to cryptocurrency analysts, the reason for Solana’s fall may be the activity of crypto whales. As it became known from the Whale Alert publication, two large transactions involving SOL took place on February 5.

First, 1.78 million SOL tokens were transferred to the Coinbase exchange. A few minutes later, another batch of SOL worth $ 11.43 million was sent to the same exchange. When tokens of this magnitude are sent to exchanges, it means that the cryptocurrency in question may experience a significant sell-off.

In the case of SOL, this is likely to happen given how the price has changed over the past 24 hours. At the time of publication, the price of the fifth most valuable cryptocurrency is $ 96.08.

The SOL price reflects the opposite dynamic compared to how it behaved during the first quarter of 2023. At the beginning of last year, the Solana token was worth $ 9.96.

Given the recent transfers, the price could fall below $ 90. In addition, an analysis of the ratio of long to short positions conducted by AMBCrypto showed that traders share similar sentiments.

It is worth reminding that over the past seven days, the Solana blockchain-based altcoin has grown by more than 42%, amid news that the Binance cryptocurrency exchange is adding support for spot trading in this digital asset. We are talking about Pyth Network (PYTH).