Solana crashes 10% as Binance dumps $32M – A classic market flush? – Crypto News – Crypto News
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Solana crashes 10% as Binance dumps $32M - A classic market flush? Solana crashes 10% as Binance dumps $32M - A classic market flush?

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Solana crashes 10% as Binance dumps $32M – A classic market flush? – Crypto News

Published

1 year ago

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  • Binance sent $32M SOL to Wintermute while Coinbase sent $30 USDC to potentially buy the dip.
  • Solana’s market dropped over 10% during the weekend, potentially caused by Binance’s alleged manipulation.

Allegedly, the Binance exchange recently engaged in “flushing” or “liquidation hunting” by sending over $32 million worth of Solana [SOL] to market maker Wintermute during a low volume weekend.

The intent was clear: to push the price of SOL down into the lower range, thereby forcing long-standing leverage traders to liquidate their positions.

This strategy is particularly effective on weekends, when trading volumes are naturally lower, making markets more susceptible to manipulation.

According to AMBCrypto’s look at Arkham’s data, Wintermute played its part by selling the SOL at a lower price, thus dumping the price further, only to buy it back at the artificially depressed rates.

Source: Arkham

Once the dip was manufactured, Wintermute reportedly returned more SOL to Binance than it had initially received, capitalizing on the price difference.

This was a win-win scenario for both entities, but according to crypto commentator MartyParty, 

“The losers are the leverage traders and the panic sellers.”

Similarly, Coinbase had sent $30 million in USDC to Wintermute on Solana, reportedly to take advantage of the dip, responding to recent claims of insufficient SOL holdings that led to users getting delays in their Solana withdrawals.

Source: Arkham

This move suggested a coordinated effort to exploit market conditions, potentially to stabilize or even profit from the artificial volatility.

How to capitalize on SOL manipulation

Understanding these tactics can be crucial for traders. By monitoring unusual large transactions from exchanges to market makers, traders might predict potential price drops, in this case, Solana.

One strategy to capitalize on such manipulations involves waiting for signs of a forced liquidation event then buying into the dip, anticipating a quick recovery as the market corrects itself.

SOL has already recovered around a third of the weekend drop. 

However, this approach requires a keen sense of market timing and an understanding of the risk involved, as not all market manipulations lead to predictable recoveries.

For those with a high risk tolerance, such strategies might offer opportunities to profit from the very volatility that others fear.

SOLSOL

Source: TradingView

The price action chart of SOL showed a sharp fall, reaching a low of $207 before rebounding as exchanges stepped in. The weekend buying by exchanges at this point suggested a strategic purchase during the dip.

Read Solana’s [SOL] Price Prediction 2025–2026

This action correlated with a downturn in MACD values, indicating decreasing momentum, which shifted positively post-buying.

If these buying patterns continue, SOL could test higher resistances near $235. Conversely, failing to maintain this support could lead to a retest of lower levels.

Next: XRP TVL surges past $80M while ETF hype builds – What’s next?

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