Solana Whale Buys $18 Million in Memecoins Amid Market Downturn
- Whale acquired $18.57M worth of memecoins on Solana, including $WIF, $POPCAT, $FWOG, and $MICHI.
- Solana memecoin market sees 11.15% drop while whale accumulates 7.25M $WIF tokens.
- Whale consolidates $18M memecoins into wallet D2Noa, impacting liquidity and volatility.
On the Solana blockchain, a large holder with a significant volume of activities has been identified accumulating substantial amounts of various memecoins. Over the 24 hours, the whale with the identification of DWhUa purchased $18.57 million worth of memecoins, including the massive purchases of $WIF, $POPCAT, $FWOG, and $MICHI tokens. These tokens were purchased on Binance and other decentralized exchanges (DEXs) and then transferred to a new wallet named D2Noa.
Through its acquisitions, whale acquired 7.249 million $WIF tokens valued at approximately $13.3 million, 5.77 million $POPCAT tokens at roughly $3.82 million, 4.57 million $FWOG tokens at $980,000, and 3.9 million $MICHI tokens at $470,000. This purchase has spurred concern and discourse considering the impact of this notable purchasing power on memecoin prices and possible effects on memecoin prices.
Impact of Whale Accumulation on Solana Memecoins
The influx of such a big amount of capital into the Solana-based memecoin market can lead to large swings in value. With the whales holding a large portion of these tokens, the reduced supply risk is posed, affecting the other traders ability to make their trades without triggering a market shift. The $WIF token, for example, may experience significant volatility depending on the activity of these holdings in a single wallet.
Some memecoins are known for their high fluctuations, and such big purchases can increase these variables even more. Further, reactions from other market participants could imitate the whales action, while others are selling off the stocks to avoid price fluctuations. The ongoing developments will affect the trading activity and the overall quantity of memecoins in circulation, which traders should observe.
Memecoin Market Faces Downturn Amid Whale Activity
The overall market, including memecoins, has been declining, with the major cryptocurrencies showing a daily decline of 6.56%. Due to this, the memecoin segments total market capitalization has decreased by 11.15%. However, the whale activity indicates a certain level of confidence in the long-term prospects of these tokens, which some analysts suggest is the result of long-term accumulation through strategic buying in anticipation of a market rebound.
The memecoins involved have been experiencing daily losses, but the performance of some of them in the past week is as follows. For instance, $WIF has shown a daily decline of 9.96% while it has recovered 3.87% over the week. Likewise, $POPCAT has dropped by 16.15% in 24 hours, but the cryptocurrency remains down by only 6.84% during the week. The following movement shows that the memecoin market remains volatile, which could pose opportunities or risks for traders.
Strategic Positioning or Market Manipulation?
The timing of the whales during a bear trend could suggest these tokens are being bought at a lower price to hold them until the market goes up. Most seasoned investors wait for dips to establish regular holdings and believe it will rebound. However, the general and massive buying of tokens and the significant ownership interest raise issues of market manipulation, where a whale may affect the prices of the tokens.
Read more: https://www.tronweekly.com/solana-whale-buys-18-million-in-memecoins/
Text source: TronWeekly
