FTX Unstakes Over $1 Billion in Solana: Market Concerns Arise
The cryptocurrency market recently witnessed a substantial move by FTX, which unstaked over $1 billion worth of Solana (SOL). This significant action has triggered various concerns regarding its potential impact on the market. Despite this massive unstaking, Solana has demonstrated remarkable resilience, currently trading around $137. Broader market sentiment, bolstered by expectations of a Federal Reserve interest rate cut, has helped maintain the bullish momentum. However, the increased supply of unstaked SOL could potentially lead to selling pressure in the future.
FTX’s Significant Unstaking Activity
Over the past three months, FTX has unstaked approximately 530,000 SOL, valued at around $71 million. This averages out to about $3.5 million per month. Despite this large-scale unstaking activity, FTX still holds a substantial amount of Solana, around 7.06 million SOL, which is worth approximately $945.7 million. This major event has indeed raised concerns about the potential downward pressure on Solana’s price in the near future.
What’s Next For Solana?
According to analyst Josh from Crypto World, Solana has shown signs of recovery with a slight upward trend over the past week. The price is expected to either continue rising or move sideways for a while. However, the coin is now approaching a resistance zone between $138 and $143, which could slow down its progress or create difficulties in moving higher.
Potential for a Bullish Breakout
If Solana can break above the $143 level and close above it on the daily chart, this would be a strong signal indicating that the coin is entering a bullish phase. Should this breakout occur, the next price target would be between $159 and $163, highlighting more potential for growth in the short term.
Support Levels
On the downside, if Solana fails to break past the $143 mark, it could drop back. However, strong support exists between $120 and $128. This indicates that even if the price falls, it is unlikely to drop below this range, providing a level of safety for investors.
Conclusion
In summary, while FTX’s significant unstaking of Solana has raised valid concerns about potential market impacts, the resilience shown by Solana coupled with positive broader market sentiment offers a mixed yet cautiously optimistic outlook. Investors will need to watch closely as Solana approaches key resistance and support levels to gauge the coin’s next moves. The coming days will be crucial in determining whether Solana can break into a bullish phase or if further selling pressure will prevail.
