Solana (SOL), the sixth-largest cryptocurrency by market capitalization, has continued its price recovery push. In the last 30 days, despite plummeting by 45%, SOL has maintained support at the $160 level. However, market activity suggests likely bullish movement.
Staked Solana signals supply squeeze potential
Lookonchain, an analytics platform, has spotted a significant transaction that involved Solana. Notably, 87,328 SOL valued at approximately $14.8 million were withdrawn from the Binance exchange.
Interestingly, this whale transaction came from a virgin wallet, suggesting it is from a new investor or entity. The withdrawal took place over two days, after which the owner decided to stake it.
Related
Analysts say the volume suggests that holders have strong buying interest. The decision to stake the SOL also marks a positive shift for the coin. The owner has decided to contribute to market scarcity via the staking move.
Generally, when investors make large withdrawals to self-custody and proceed to the stake, it suggests long-term confidence in the asset. This is because the investor is not looking for selling opportunities in the short term.
Experts note that the staking move could reduce Solana’s liquidity supply, creating a kind of scarcity. This can impact prices if demand remains strong.
As of this writing, demand is yet to register an uptick as trading volume is currently down by 10.96% to $5.08 billion. However, SOL is slightly up by 0.77% to trade at $171.07 in the last 24 hours, according to CoinMarketCap data.
ETF prospects add to Solana’s momentum
Related
Meanwhile, other developments in the Solana space that could push a rebound for the coin is the recent acknowledgment of the Canary Capital filing. The asset manager joined others to file for an exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC).
The SEC also acknowledged the Solana ETF filing from Grayscale earlier this month. Some predictions as to which coin might get regulatory approval have favored a Solana ETF next.
