- Binance has sent Wintermute $32M SOL while Coinbase sends $30 USDC in order to buy the dip.
- Binance may have been responsible for the over 10 percent drop in Solana’s market during the weekend.
Binance is alleged to have recently been involved in a scandal. “flushing” The following are some examples of how to use “liquidation hunting” By sending more than $32 millions worth of Solana [SOL] Wintermute, a market maker during a weekend with low volumes.
It was obvious that the intention of the traders involved in the SOL market was to lower the SOL price to a low range and force them to liquidate longstanding positions.
It is especially effective at weekends, as trading volumes tend to be lower and the markets therefore more susceptible.
AMBCrypto looked at Arkham data and found that Wintermute had played a part in the price drop by selling SOLs at lower prices, causing the market to fall further. They then bought them back at artificially low rates.
Source: Arkham
Wintermute, after manufacturing the dip, returned to Binance more SOL than they had originally received. They capitalized on the difference in price.
Crypto commentator believes that this was a win for both parties. MartyParty,
“The losers are the leverage traders and the panic sellers.”
Coinbase sent $30,000,000 in USDC (USDC) to Wintermute in Solana to try to profit from the recent dip. They did this in response to complaints that SOL holders were insufficient, leading to delays for users withdrawing their Solana.
Source: Arkham
The move was a coordinated attempt to take advantage of the market’s artificial volatility, possibly to profit or stabilize it.
Profit from SOL manipulation
It is important that traders understand these strategies. Traders can predict price changes by monitoring large, unusual transactions between exchanges and market makers. In this case, Solana.
A strategy for capitalizing on these manipulations is to wait until there are signs of forced liquidation and then buy into the dip. This will allow you to profit from a rapid recovery when the market corrects.
SOL is already recovering around one-third of its weekend loss.
This approach does require a good sense of timing the market and recognizing that not all manipulations of markets lead to predictable returns.
For those who are comfortable with risk, these strategies may offer the opportunity to capitalize on volatility.
TradingView
SOL’s price chart showed that it fell sharply, hitting a low at $207 and then rebounded as the exchanges got involved. Exchanges were buying at this stage, suggesting a tactical purchase.
You can read more about it here Solana’s [SOL] Price Prediction 2025–2026
The MACD value showed a downward trend, showing a decreasing momentum. This momentum shifted to favourable after the purchase.
SOL may test resistances higher than $235 if these patterns of buying continue. In the event that this level of support is not maintained, it could result in a return to lower levels.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
