Recently, Solana 
$127 (SOL) experienced a sharp decline in price, dropping below $125. The primary reason for this downturn is attributed to significant sell-offs from wallets linked to FTX and Alameda Research. Investors are expressing concerns over the risk of continued sales pressure.
FTX and Alameda Transactions Heighten Sales Pressure
According to data from Arkham Intelligence, Alameda Research unstaked approximately $23 million worth of SOL tokens on March 13. Shortly after the tokens were unstaked, the SOL price saw a steep drop of about 5%. It is reported that Alameda is continuing liquidation actions to meet loan repayments, with around 8 million SOL tokens sold by FTX and Alameda since November 2023. Substantial sales transactions on major cryptocurrency exchanges have created significant selling pressure in the market.
FTX and its affiliated companies still hold about $693 million worth of 5.5 million SOL tokens. Experts emphasize the high likelihood of these tokens being sold in the future. Investors are being urged to remain cautious, as such potential sales could lead to further decreases in Solana’s price.
Technical Indicators Signal Risky Levels for SOL
Technical analyses reveal that after reaching $131 during its last rise, Solana entered a rapid downward trend. Analysts, using the Elliott Wave model, suggest that a potential support level for SOL price is around $112. Insights from analysts like CryptoUB indicate that the current price movements are critical for determining investment strategies.
Market participants note that reversing the current downward trend in SOL price is unlikely in the short term. Due to technical indicators and ongoing sales pressure, investors are advised to act more cautiously. Close monitoring of SOL price movements is recommended.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
