- Solana’s stock dropped sharply by 20% as FTX and Alameda offloaded 83.7K SOL ($10M).
- A major whale unstaked 134,902 SOL and listed 135K SOL for sale, increasing sell pressure on Solana.
- 3.03M SOL ($432.5M) was unstaked, and 2.95M SOL is still at risk of liquidation, threatening Solana’s stability.
Solana (SOL) has been under immense pressure as FTX and Alameda Research persist in their liquidation spree. Over the past two days, the troubled entities offloaded 83.7K SOL, valued at approximately $10 million, triggering a steep 20% drop in SOL’s price.
This aggressive selling comes amid broader concerns over Solana’s ability to absorb the mounting sell-side liquidity. Adding to the woes, a prominent whale recently unstaked 134,902 SOL ($19.26 million) and placed an additional 135K SOL for sale on Jupiter Exchange, further fueling downward pressure.
The latest wave of sell-offs is part of a much larger liquidation event. FTX and Alameda unstaked a staggering 3.03 million SOL, worth around $432.5 million, which resulted in a sharp 13.92% drop in Solana’s market price.
Recent transactions have further strained liquidity conditions, with 24,799 SOL sold to Binance and 58,964 SOL valued at $8.52 million deposited onto exchanges. This trend suggests continued dumping, fueling concerns about sustained selling pressure. More alarmingly, 2.95 million SOL from the unstaked reserves remains, posing a significant threat to Solana’s price stability in the coming weeks.
Despite an initial recovery from its 20% dip to $139.21, SOL rebounded 9.44% to $148. However, weak buying momentum casts doubt on the sustainability of this bounce. Trading volume has dropped 21% to $6.86 billion, signaling fading investor interest and a potential stall in recovery efforts.
A deeper look into Solana’s Total Value Locked (TVL) further underscores the bearish outlook. TVL has plunged by 37.92% since its January peak, dropping from $14.5 billion to just $9.002 billion, highlighting heavy capital outflows and a loss of investor confidence.
Can Solana Hold Its Ground?
Historically, SOL has struggled to maintain strong support levels, especially since reaching its all-time high (ATH) of $270. The large-scale unstaking and persistent selling pressure has left SOL vulnerable to further corrections.
Its price structure reflects weak bullish momentum, making it susceptible to additional declines. The absence of strong support levels increases the risk of deeper pullbacks, while heightened whale activity further raises the probability of extended sell-offs.
With 2.90 million SOL still at risk of liquidation, a drop below $130 appears increasingly likely in the coming months unless buyer sentiment shifts significantly. While a broader market rebound could offer temporary relief, Solana’s long-term trajectory remains uncertain amid persistent selling pressure.
Will the market absorb this massive sell-side liquidity, or is a deeper correction inevitable? Investors should brace for heightened volatility as Solana navigates one of its most challenging phases.
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