White Whale memecoin drops 60% after substantial holder liquidation

O White Whale, a memecoin based on the Solana blockchain, experienced a sharp drop of up to 60% last Monday when its largest private holder liquidated approximately US$ 1.3 million worth of tokens, triggering a cascade of sales in the market. The event reignited debates about the inherent volatility of memecoins and liquidity concentration within the ecosystem.

The chain reaction sale that triggered the price drop

On-chain data shows that two wallets - 6kasXu and the launcher address CZFDnH - sold about US$ 1.3 million worth of WHITEWHALE in the last hour chart, significantly pressuring the price downward. Available liquidity fell to just above US$ 900,000 in the early morning hours, exacerbating the selling pressure and creating a highly volatile scenario.

The movement temporarily wiped out a substantial portion of the token’s market value, with White Whale having been launched only about three months ago on the Pump.fun platform. The memecoin became known for its association with the online persona @TheWhiteWhaleV2, a cryptocurrency trader whose profile gained significant traction on social media.

Project denies “rug pull” but cannot contain outflow

The White Whale team responded to the liquidation via a statement on X, describing the event not as a massive treasury sale but as a “liquidity event” that redistributed an overly concentrated position to a broader base of traders. The statement confirmed that the project carried out some buybacks during the decline, aiming to stabilize the price.

Despite the official denial, critics on social media raised accusations of a “rug pull” — the fraudulent scheme where creators abandon projects leaving investors with total losses. White Whale, like most memecoins, has a price primarily driven by market sentiment and large holder positioning, making it vulnerable to sharp movements when substantial positions are liquidated quickly.

Partial recovery amid memecoin volatility

By Tuesday morning, White Whale recovered part of its losses, trading around US$ 0.040, with a market capitalization close to US$ 40 million. A trading volume of approximately US$ 12 million in the last 24 hours indicated that speculative interest remained robust despite recent extreme volatility.

The relative recovery suggests that some investors saw the liquidation as an accumulation opportunity, repositioning their portfolios after the initial drop. However, the volatility demonstrated in the event makes it clear that the memecoin market structure remains fragile, especially when large holders decide to exit their positions.

Broader context: Bitcoin and cryptocurrencies under macroeconomic pressure

The White Whale episode occurs at a time when cryptocurrency markets face broader macroeconomic pressures. Bitcoin remains around US$ 88,270, consolidating roughly 30% below its October peak after the Federal Reserve kept interest rates unchanged.

The strong recovery of the US dollar and continued strength in commodities — especially gold at record levels, along with silver and copper at elevated levels — have overshadowed the performance of digital assets. Analysts point out that Bitcoin is being traded more as a high-beta risk asset than as a traditional macroeconomic hedge.

Ether (US$ 2,960), Solana (US$ 123.28), BNB (US$ 900.30), and Dogecoin (US$ 0.12) showed modest gains, but reduced trading volumes suggest caution in the broader market. In this uncertain context, events like the White Whale liquidation tend to amplify, reflecting investors’ sensitivity to volatility.