Solana’s Resilience Amidst Market Pressure

Solana has shown resilience despite FTX/Alameda unstaking millions of SOL. The long-term impact hinges on whether buyers can absorb the mounting sell pressure.

FTX and Alameda Research’s liquidation of Solana (SOL) continues, with 83.7K SOL (worth $10 million) offloaded in just two days, resulting in a 20% price drop.

Additionally, a whale unstaked 134,902 SOL (valued at $19.26 million) and put 135K SOL up for sale through Jupiter Exchange. With increasing sell-side liquidity, the question remains—can SOL withstand this pressure?

Solana Faces Unstaking Surge

The FTX/Alameda entity unstaked 3.03 million SOL (approximately $432.5 million), leading to a sharp 13.92% decrease in market price. Recent actions include selling 24,799 SOL to Binance and depositing 58,964 SOL ($8.52 million) onto exchanges, exacerbating liquidity issues.

The remaining 2.95 million SOL from the unstaked total poses a risk of further downward pressure on Solana’s price. Despite a recovery from a 20% dip to $139.21, SOL is currently priced at $148 after a 9.44% rebound. However, trading volume has decreased by 21% to $6.86 billion, indicating weak buying momentum, which jeopardizes the recovery.

The long-term forecast appears bearish, evident in Solana’s Total Value Locked (TVL), which has plunged by 37.92% from its January peak of $14.5 billion to just $9.002 billion. The future for SOL seems challenging unless buyer sentiment improves significantly.

Lack of Support Undermining SOL’s Recovery

Charts and TVL metrics for Solana reveal intense profit-taking and unstaking activities, highlighting a struggle to maintain gains. Since reaching its all-time high of $270, SOL has been unable to establish consistent support, a consequence of continuous large-scale unstaking.

With weak bullish momentum, Solana’s price is under pressure, increasing its susceptibility to further declines. The market is struggling to absorb substantial sell-side liquidity, particularly from whales who are unstaking their SOL.

A broader market recovery could offer short-term relief, but the long-term outlook for Solana remains uncertain. With approximately 2.90 million SOL at risk of liquidation, a decline below $130 seems increasingly possible in the coming months. The lack of strong support levels since its ATH of $270 renders SOL vulnerable to sell-offs and profit-taking.