Solana's price has recently experienced a significant drop, falling below the critical $125 support level. This sudden decline has sparked concerns among investors and market analysts, with large transactions linked to FTX and Alameda Research playing a key role in the downturn.
Key Factors Behind Solana's Price Drop
FTX and Alameda Research Transactions
On March 13, Solana's price fell sharply by 5% following a major transfer of SOL tokens from Alameda Research. According to Arkham Intelligence, Alameda unstaked over $23 million worth of SOL, distributing the funds across 38 new addresses. This move raised fears of increased sell pressure as more SOL entered the market.
Arkham Alert: Alameda unstaked $23M SOL to 38 new addresses.
An FTX/Alameda staking address received $22.9M SOL from an unstaking event and distributed these funds to 37 addresses with prior SOL activity.
— Arkham (@arkham)
The market reaction was swift, with traders becoming cautious about potential further unstaking and sell-offs from FTX-linked wallets.
Historical Unstaking Activity
FTX and Alameda Research have been unstaking SOL tokens since November 2023, totaling 8 million SOL (worth ~$1 billion). Many of these tokens have already been sold on major exchanges like Coinbase and Binance, contributing to Solana’s downward price trend.
In early March, FTX unlocked an additional 3 million SOL ($432 million), further suppressing SOL’s price despite positive momentum in the broader crypto market.
Potential Continued Weakness
FTX still holds 5.5 million SOL (~$693 million) that could be unstaked or sold, maintaining downward pressure on Solana’s price. Even with improving macroeconomic conditions (e.g., cooling U.S. inflation data), SOL’s recovery remains uncertain due to these lingering sell risks.
Solana Price Technical Analysis
Solana’s technical outlook remains bearish:
- Failed to hold $125 support, now a critical level.
- Potential Elliott Wave reversal near $112 if bearish momentum continues.
Analyst CryptoUB notes:
"Above $127 = longs, Below = shorts."
Meanwhile, trader CW8900 observes:
- Strong sell wall at $180.
- Current buy wall provides support, but FTX liquidations may keep SOL suppressed.
FAQs
Why did Solana’s price drop suddenly?
The drop is linked to large unstaking transactions from FTX/Alameda wallets, increasing sell pressure.
How much SOL does FTX still control?
FTX holds 5.5 million SOL (~$693 million) that could be sold.
What is Solana’s key support level?
$125** is critical; a break below could lead to further declines toward **$112.
Conclusion
Solana’s price remains vulnerable due to FTX-linked liquidations and bearish technicals. Traders should monitor key support levels and broader market conditions before making moves.
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### Keywords:
- Solana price
- FTX liquidation
- Alameda Research
- SOL unstaking
- crypto market analysis
- support levels
- bearish trend