Solana’s price has recently dropped below the $125 mark, sparking concern among investors and traders. This decline can be attributed to a combination of factors, with the ongoing liquidation of FTX and Alameda Research assets significantly adding to the sell pressure on Solana.
FTX and Alameda’s Liquidation Impact
A sharp price pullback occurred on March 13, when Solana’s value dropped by 5%, following large transfers from wallets connected to FTX and Alameda Research. According to Arkham Intelligence, over $23 million worth of Solana (SOL) was unstaked by Alameda Research, and the funds were dispersed across 38 different addresses. This action was part of the ongoing asset liquidation aimed at repaying creditors, sparking fears of increased sell pressure on the market.
These moves have triggered bearish sentiment, as the influx of unstaked SOL tokens potentially increases the available supply in the market, heightening concerns of further downward price movement. Many investors are wary of the impact these transfers could have on Solana’s price, especially given that these assets have already been partially distributed to various addresses.
Ongoing Unstaking and Large Transactions
The situation with FTX’s involvement in Solana dates back to November 2023, when FTX and Alameda began unstaking a significant amount of SOL tokens. By early March 2025, the total unstaked tokens reached 8 million SOL, valued at around $1 billion. Of this, over 3 million SOL tokens, worth approximately $432 million, were unlocked in early March, contributing further to Solana’s price struggles.
While broader market conditions have shown some positive signs, such as cooling inflation, Solana’s price has remained subdued, especially in comparison to other altcoins like XRP and ADA. This continued underperformance highlights the ongoing pressure Solana faces from the liquidation of FTX’s holdings.
Potential for Further Decline
Currently, Solana’s price is still heavily influenced by the ongoing asset liquidations. With around 5.5 million SOL tokens valued at $693 million still controlled by FTX and Alameda, there is concern that these assets could be unstaked or sold in the future, prolonging the downward price trend.
Market participants are hesitant to accumulate Solana due to the looming risk of further sell-offs. As long as a significant portion of Solana’s supply remains in the hands of FTX and its affiliates, the potential for a meaningful price rebound appears limited in the short term.
Technical Analysis and Market Sentiment
From a technical standpoint, Solana is facing increasing pressure. After briefly reclaiming the $131 level, the price quickly reversed and fell below the $125 support level, now seen as a critical point for future price movements. If Solana fails to hold support at this level, further downside may be expected.
Some analysts are observing a potential reversal pattern around $112, with key resistance at the $127 mark. Analysts also point to a prominent sell wall around the $180 price level, suggesting that overcoming this barrier could trigger a rebound. However, until the liquidations are resolved and these technical levels are confirmed, the bearish pressure from FTX’s ongoing actions will likely continue to weigh on Solana’s price.
In conclusion, Solana’s recent price decline is driven by the liquidation of assets tied to FTX and Alameda, combined with an increased supply of SOL tokens hitting the market. Traders are cautious about entering positions amid the uncertainty surrounding the remaining assets under FTX’s control.
Related topics:
Dogecoin Price Targets 318% Rally as Bullish Momentum Gains Traction
Top Analyst Names 3 Conditions For Cardano To Flip Solana
Analysts Predict XRP Could Reach $1,000 Under Certain Conditions
