News Will Izuchukwu February 26, 2025
A prominent whale address in the $MELANIA market recently sold off 13.975 million $MELANIA tokens in one transaction, and that caused the token’s price to drop 14.5%.
The sale occurred just four hours ago and exchanged a good amount of $MELANIA for 14.316 million USDC. This is a singular event that spoke volumes about the volatility of the market and how one big player in it can dramatically impact prices. If you’re an investor, you probably don’t want to see this kind of thing happen to the asset you’re holding. What makes this story even a little suspect with us is that this dramatic price drop incurred a $14.6 million loss for the whale—half of what they originally invested.
The whale’s decision to divest completely from $MELANIA is a watershed moment for the token’s market trajectory. Four hours ago, the investor sold off all 13.975 million $MELANIA tokens for a total of 14.316 million USDC. The trade produced a staggering loss, realized at a price of about $1.00 per $MELANIA token. The timing of the sale couldn’t have been worse, as it seems to have triggered a sharp dump in the price of $MELANIA, which was already on the decline. Following the whale’s trade, the price of $MELANIA crumbled from $1.17 to $1.00, reflecting a not-so-friendly 14.5% price drop during a time when the broader market was relatively stable.
For the people who keep an eye on the $MELANIA market, this whale’s eventful plunge certainly caught our attention. Triggering an immediate and severe impact, the trade pushed the price of the token down, down, down—almost hitting an all-time low. It raised eyebrows and elicited a few gasps as to whether the token is stable or has any future potential. The actual dollar amount associated with this sale is impressive and alarming, and not just because we are talking about a loss that throws into question the profitability of trading in cryptocurrencies at all.
About a month ago, the whale took on $MELANIA. Their first step was to use a total of 28.93 million USDC to buy 13.975 million tokens. That works out to an average price of $2.07 per token. Given the amount of money spent and the price at which the tokens were bought, this was clearly an investment by someone who had confidence in $MELANIA token’s potential to do well. The next question is: Why did the whale choose $MELANIA? Of the tokens accumulated, the 13.975 million tokens give the whale a significant holding (a token vesting schedule indicates that it should not be sold for some time).
As the days passed, though, $MELANIA’s worth began to fade. It was not a good sign when a newly launched token started to falter just a few days into its life. This was further compounded by the fact that a large investor—someone actually referred to as a “whale” in crypto terminology—was seen exiting the token. Elon Musk and his $DOGE token had nothing on the big fish that was exiting $MELANIA. It was hard to tell just how badly the move would affect the price, but it was also hard to see it as anything but a bearish indicator.
4 小时前,一个 $MELANIA 巨鲸地址在链上一笔割肉卖出 1397.5 万枚 $MELANIA 换成 1431.6 万 USDC,直接将 $MELANIA 价格砸掉了 14.5% (从 $1.17 砸到 $1)。
这个鲸鱼是在一个月前通过 DEX 直接购买或组单边流动性的方式,一共花了 2893 万 USDC 囤积了这 1397.5 万枚 $MELANIA,成本均价 $2.07。
4… pic.twitter.com/htONSjDzxH— 余烬 (@EmberCN) February 25, 2025
This whale’s sell-off had immediate and serious consequences. In a cryptocurrency market as fragile and volatile as this one, large transactions can have a dramatic effect on price. The sale of 13.975 million $MELANIA tokens caused the price of the asset to drop by 14.5% in a very short period of time. To understand how much risk this event posed, consider this: after the sell-off, $MELANIA was down more than 18% on CoinMarketCap. And sharp declines like this aren’t good for overall market sentiment, which begs the question: how do we mitigate this risk?
The recent price collapse fortresses the concerns about the long-term stability of the token for many retail investors who hold $MELANIA. The size of the sell-off itself explains the market’s strong adverse reaction. We typically associate large liquidity drops with high-net-worth individuals, and their exits from anything are always a cause for concern. Moreover, when liquidity drops, the natural reaction of the token’s price is to drop, and that is what seems to have happened here.
The market’s reaction to the recent sharp drop may not be in sight yet, but some observers are on the lookout to see if the token can make a comeback after the sharp downturn. If the whale’s exit signals pressing issues with $MELANIA, it could lead to a situation where more investors decide to make like that day’s top gainer—and get out.
The key issue at this point in time is whether $MELANIA can pull off a comeback from this sharp sell-off and keep building momentum in the long run. When such a large player in the market as a whale decides to cut losses and bail out at a 50% loss, it really raises questions about how much faith anyone has in the future performance of the token. But the cryptocurrency market can be very unpredictable. There’s no reason why $MELANIA couldn’t gain traction or demand and shoot back up in price sometime in the near future.
Currently, holders of $MELANIA are reeling from the immediate aftermath of the whale’s sell-off. Despite the token’s halving in price, one must consider the larger market dynamics at play. Will this one transaction spell doom for $MELANIA’s even modest upward momentum, or is it merely a short-term pullback in a far longer, still bullish, price journey for the token?
Only time will tell. But the recent events underscore the risks tied to trading in crypto assets—especially those with low liquidity and high volatility. As of now, $MELANIA’s future is very much in question, and investors and analysts are poised to see how the market copes with this significant sell-off.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.
Argin Chronicles Copyright © 2025.
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