Why Solana Price is Falling Suddenly?

by

🚨 Solana’s Price is Plummeting: What’s Behind the Crash? 🚨

Why Solana Price is Falling Suddenly?

It appears that Solana’s price has taken a rather… precipitous drop, below the $125 support level, to put it mildly. The usual suspects are, of course, at the center of this drama: FTX and Alameda Research. One can’t help but wonder if they’re not just a bit… over-enthusiastic about liquidating their assets.

These transactions, as one might expect, have contributed to the rather… bearish sentiment surrounding Solana. It’s almost as if the market is saying, “Ah, yes, because nothing says ‘investment opportunity’ like a bunch of dodgy wallets unloading their SOL tokens.”

FTX and Alameda Research Transactions Contribute to Price Decline

On March 13, Solana price saw a rather… sharp price pullback, falling by 5% on the day. One can only imagine the look on the faces of those poor investors who thought they were getting a good deal on their SOL tokens. Alas, it seems that Alameda unstaked over $23 million worth of SOL, distributing the funds across 38 different addresses. Because, you know, one can never have too many SOL tokens floating around.

ARKHAM ALERT: ALAMEDA ADDRESS JUST UNSTAKED $23M SOL TO 38 NEW ADDRESSES

An FTX/Alameda Staking address received $22.9M SOL from a staking address unlock and has just distributed these funds to 37 addresses that have previously received SOL from this address.

These addresses…

— Arkham (@arkham) March 12, 2025

The market reaction, as one might expect, was rather… swift. Holders became wary of the additional supply of SOL entering the market, fearing that further unstaking could lead to more downward price action. Ah, the classic “I’m not selling, I’m just reorganizing my portfolio” move.

Unstaking History of Solana Assets from FTX

FTX’s involvement with Solana goes beyond the March 12 transaction. Since November 2023, FTX and its trading arm, Alameda Research, have unstaked roughly 8 million SOL tokens, valued at nearly $1 billion. Because, you know, who needs to hold onto their assets when you can just… unstake them?

The most notable of these events occurred in early March when FTX unlocked over 3 million SOL tokens, worth approximately $432 million. Ah, the thrill of watching your assets disappear before your very eyes!

Potential for Continued SOL Price Weakness

As of now, SOL price is still under the influence of FTX’s ongoing liquidation process. Market participants are concerned about the 5.5 million SOL tokens, currently valued at around $693 million, that remain under the control of FTX and Alameda. These assets are still poised to be unstaked or sold, continuing the risk of additional downward pressure on Solana’s price.

Despite improving broader market conditions, such as the cooling inflation trend signaled by the latest U.S. CPI and PPI data, Solana’s potential for a price rebound appears limited. Because, you know, a little thing like inflation can’t possibly be a concern when you’re dealing with FTX’s… questionable business practices.

Solana Price Technical Outlook and Market Sentiment

From a technical perspective, Solana’s price action remains under pressure. After briefly reclaiming the $131 mark, the SOL price faced a quick reversal as bearish sentiment took hold. The Solana price has since dipped below the $125 support, which is now viewed as a critical level for future price action.

Technical analysis indicates that if Solana price fails to maintain support at these levels, further downside may be expected. Some analysts point to an Elliott Wave pattern suggesting a potential reversal at around $112. Ah, the thrill of watching your investment plummet to new depths!

In addition to these technical observations, another market participant, CW8900, mentioned that there is a prominent sell wall around the $180 price point for Solana, but a solid buy wall at the current price range offers support. Ah, the eternal conundrum: to buy or not to buy, that is the question.

This setup implies that if Solana price manages to break through the falling wedge pattern and surpass the $180 sell wall, it could potentially revisit its previous high. However, until these technical levels are tested and confirmed, the bearish pressure from ongoing FTX liquidations will likely continue to weigh on the price.

Read More

2025-03-14 05:45