Key Insights:
- FTX unstaked 3.03M SOL, worth $432.5M, triggering fears of further price drops.
- Solana price dropped 19% in 24 hours, with key support near $120 amid volatility.
- Bitcoin recovery could prevent SOL from falling below $100 despite heavy selling.
Solana price has been highly volatile since the beginning of the year. The token price reached an all time high only to drop by 53% in the subsequent session. However, the recent unstaking has intensified selling pressure on FTX. Notably, the market instability has seen investors start to doubt whether SOL can go as low as $100.
FTX Unstakes 3.03M SOL, Pressuring Market
FTX recently unstaked 3.03 million SOL, equivalent to $432.5 million, triggering more negative sentiments on SOL price trends. These tokens were distributed to 37 different wallets, presumably for Binance and Coinbase accounts. This large unstake event has compounded this selling pressure on the ongoing market correction.
Meanwhile, both FTX and Alameda have unstaked and sold 7.83 million SOL since November 2023, which is equivalent to about $986 million. This has affected the market sentiment due to the average sale price of $ 125.80. Some analysts are forecasting that future unlocks in April may decrease the price.
A much larger unlock of 11.2 million SOL is anticipated in early March worth about $1.5 billion. The market has been on the edge as investors wait for the next big fluctuation to occur. Some believe that the Solana selling could intensify and take the price below crucial support levels.
Solana Price Drops 19% in 24 Hours
Solana price declined by 19% in the last 24 hours and is currently trading at $135.14. It has a market capitalization of $70.16 billion and average trading volume dropped by 24% to $9.56 billion. The recent sell-off has raised concerns that it may extend into a longer period of decline.
The price drop came after the Solana token reached a high of $177.88. This uptrend was influenced by the announcement of Donald Trump’s U.S. Strategic Crypto Reserve. However, the speculations did not last long as FTX unstaked millions of SOLs from the staking service.
Key Support and Resistance Levels for Solana Price
Currently, Solana price is retesting the key support levels amid further price decline. The first support is at $140, while the next support level is $120. A breakdown of these zones may lead to more declines.
Resistance levels that were established at $160 and $180 make it difficult for the short-term recovery of the price. Based on these levels, SOL price can recover the bullish trend. Nonetheless, further selling from FTX may hinder any end-of-quarter surge.
Historical data reveal that such episodes entail selling large volumes which are followed by brief pullbacks. However, if buyers come again at key supports, the prices may start to rally and reverse. These zones make traders watch out for the direction of Solana’s price movements.
BTC Recovery Could Prevent SOL From Dropping
Bitcoin price action plays a crucial role in Solana’s trajectory. Over the past four years, BTC has been bullish in March. If this trend continues, it could support SOL’s recovery.
Coinglass data suggests that $300 million worth of SOL would liquidate if prices hit $127. This could push the token to $120 before a potential rebound. The market remains highly reactive to liquidation levels.
Interestingly, SOL price has proved to be rather strong in falling market times despite the selling pressure. Therefore, if the price of Bitcoin rises, it could provide support for Solana and prevent it from falling below $100. Currently, market players are observing BTC for signs of establishing a base after a rather volatile period.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
