Recent activity has intensified fears of downward price action. In just two days, 83.7K SOL ($10 million) was liquidated, leading to a 20% price drop. Now, an even larger move threatens market stability.
A whale recently unstaked 134,902 SOL ($19.26 million) and listed 135K SOL for sale on Jupiter Exchange. This surge in sell-side liquidity raises doubts about Solana’s ability to absorb the supply without further losses.
FTX and Alameda Liquidations Weigh on SOL
The ongoing liquidation of Solana holdings tied to FTX and Alameda Research continues to impact market sentiment. A total of 3.03 million SOL ($432.5 million) was unstaked, triggering a 13.92% price decline.
Key sell-offs contributing to the pressure include:
- 24,799 SOL transferred to Binance
- 58,964 SOL ($8.52 million) deposited across exchanges
Despite these moves, an additional 2.95 million SOL remains unstaked, posing a continued risk of downward pressure.
Solana Attempts to Rebound, But Volume Declines
After tumbling 20% to $139.21, Solana rebounded to $148, posting a 9.44% recovery. However, market data reveals troubling signs—trading volume has fallen 21% to $6.86 billion, indicating weaker demand.
Without renewed buyer momentum, Solana’s short-term recovery could stall, making it vulnerable to further declines.
Total Value Locked (TVL) Signals Bearish Outlook
Solana’s DeFi ecosystem is also showing signs of strain. Its Total Value Locked (TVL) has plunged 37.92% from a January peak of $14.5 billion to just $9.002 billion. This contraction reflects declining confidence in Solana’s network strength.
Is Solana at Risk of Further Declines?
Weak Support Levels
Since reaching its all-time high of $270, Solana has struggled to establish strong support levels. Continuous unstaking and sell-offs have made it increasingly susceptible to market downturns.
Potential Drop Below $130?
With 2.90 million SOL still unstaked and at risk of liquidation, a drop below $130 is becoming more likely. If buyer sentiment does not improve, Solana could face further volatility in the coming months.
The Road Ahead for SOL
Solana’s ability to withstand ongoing sell pressure will determine its trajectory. While short-term recoveries are possible, the long-term outlook remains uncertain as large holders continue to liquidate assets. Without strong market demand, SOL may struggle to regain its bullish momentum.
