Whale Dormant for a Year Deposits $7.2M in Solana to Exchange—Pressing the Cash-Out Button?

▲ Solana (SOL)

Amid a sluggish market atmosphere, a whale wallet that had been dormant for years has suddenly awakened, moving a large amount of Solana (SOL) and triggering urgent sell-off alarms among investors.

According to crypto-focused media outlet U.Today on February 23 (local time), a long-inactive Solana whale wallet abruptly became active and withdrew 50,000 SOL. Blockchain tracking data shows that the wallet had remained dormant for more than a year without any transactions. As a major investor who had watched asset values rise over several years suddenly made a move, market participants reacted with heightened caution, interpreting it as a potential precursor to a large-scale cash-out.

The 50,000 SOL moved is currently worth approximately $7.2 million at market prices, a size substantial enough to significantly impact liquidity within the Solana ecosystem. The whale reportedly transferred the withdrawn funds to a specific exchange wallet, a move typically interpreted as preparation for a market sell-off. With Solana hovering near a key resistance level and searching for direction, concerns are mounting over short-term price volatility should a large volume of tokens flood the market.

On-chain analytics firms suggest that such collective movements by whales could signal either a market top or a strategic reallocation of assets. Historically, the reactivation of dormant wallets has frequently been observed just before major bull runs or sharp downturns, making it a key indicator of market direction. This particular whale is also believed to have a significantly lower initial purchase price, increasing the likelihood of substantial profit-taking.

The Solana ecosystem has recently received positive evaluations due to improved network stability and growing user adoption. However, signs of large holders exiting the market are dampening investor sentiment. Experts advise retail investors not to be swept up in panic selling driven by whale movements, but instead to closely monitor the actual inflow of tokens to exchanges. While a massive market sell-off could lead to a temporary price decline, some analysts believe there is sufficient potential for a rebound at support levels.

Movements of large capital leave unmistakable traces in the transparent blockchain ecosystem, heightening market tension. Whether this Solana whale’s next step will remain a simple asset transfer or become a catalyst for a broader market downturn depends on the actual volume of executed sell orders on exchanges. Investors are strengthening real-time on-chain monitoring to prepare for the potential impact of significant liquidity shifts.

Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses resulting from it. The content should be interpreted solely for informational purposes.