Solana‘s (SOL) value has recently faced a steep decline, sinking below $125. This troubling drop is largely due to intensified sell-off activities from wallets associated with FTX and Alameda Research, raising concerns among traders about the potential for ongoing market pressure.
What Transactions Are Causing This Sell-Off?
Recent findings by Arkham Intelligence reveal that Alameda Research unstaked around $23 million worth of SOL tokens on March 13, leading to a sharp 5% drop in the price shortly thereafter. Alameda appears to be actively liquidating assets to settle loan obligations, having sold nearly 8 million SOL tokens since November 2023. This wave of sales from FTX and Alameda on major cryptocurrency exchanges has created substantial downward pressure in the market.
Are There More Risks Ahead for Investors?
With FTX and its affiliates still holding around $693 million in 5.5 million SOL tokens, there’s a significant chance these assets may be sold in the near future. Experts are advising caution, as additional sales could further erode Solana’s value.
Technical analyses reveal that after a recent peak of $131, Solana has entered a concerning downward trajectory. Predictions based on the Elliott Wave model suggest a support threshold around $112, while market analysts emphasize the current fluctuations will be crucial in shaping future investment decisions. Investors should be vigilant.
- Major sell-offs by FTX and Alameda are ongoing.
- Technical indicators suggest a precarious situation for SOL.
- Investors need to prepare for potential further declines in price.
Market participants are finding it unlikely for Solana to reverse its downward trend in the immediate future. Given the combination of technical indicators and persistent sales pressure, it is advisable for traders to proceed with caution and keep a close eye on any changes in SOL’s market dynamics.
