Amid the market recovery, a noteworthy event has emerged, catching the attention of Solana traders and investors. A cryptocurrency wallet associated with the bankrupt FTX/Alameda has withdrawn a substantial 177,693 SOL, valued at $23.75 million, from Solana PoS, as reported by SolScan. The movement of this significant fund to centralized exchanges (CEXs) could potentially introduce considerable selling pressure in the market.
FTX-Linked Wallet Raises Concern of Selling Pressure
Currently, Solana traders and investors are keenly observing the possible reasons behind this unstaking activity. Once these tokens are unstaked, they could be transferred to CEXs, increasing the SOL reserves on these exchanges. This increase could lead to significant selling pressure, consequently impacting the price negatively. Beyond this substantial withdrawal, the wallet still holds a massive 7.057 million SOL, worth approximately $943 million, in Solana PoS Staking.
Current Price Momentum
As of the latest update, SOL is trading near $135, experiencing a price surge of over 2.85% in the last 24 hours. Interestingly, this significant fund withdrawal has not impacted the SOL price adversely. However, the trading volume has dropped by 30% during the same period, indicating a decrease in trader participation, possibly due to the recent transaction by the FTX-linked wallet.
Solana Technical Analysis and Upcoming Levels
Expert technical analysis reveals that SOL is currently challenged by a strong resistance level at $138, which has been a hurdle for the past two weeks. Additionally, SOL is trading below the 200 Exponential Moving Average (EMA) on a daily time frame, signaling a downtrend.
Based on historical price trends, if SOL closes a daily candle above $138, there is a high possibility of an 18% surge, potentially reaching $163 or even higher, possibly up to $185. This bullish scenario is contingent on SOL closing a daily candle above $138; failing to do so may invalidate this upward momentum.
Bullish On-chain Metrics
The bullish outlook for SOL is further reinforced by on-chain metrics. According to Coinglass, the SOL Long/Short ratio stands at 1.121, reflecting a bullish market sentiment. Furthermore, 52.86% of top Solana traders are holding long positions, while 47.14% are holding short positions.
Meanwhile, SOL’s Future open interest has remained unchanged over the past 24 hours, although it has been declining since the beginning of September 2024, indicating a shift in market dynamics.
