Solana Price Prediction: FTX and Alameda Unstake $24M in SOL

Key Insights

• A massive amount of Solana has just been unstaked from an FTX/Alameda-related account.

• The unstaked Solana is currently dormant but is still causing investors to panic because of a possible sell-off.

• According to the charts, Solana's price is currently showing signs of bullish momentum, and a breakout above the 25-day EMA could lead to further gains.

Solana, FTX and Alameda continue to capture attention across the crypto market, even two years after the exchange’s collapse.

This week, on-chain data shows that a major transaction occurred from FTX/Alameda-related accounts, with a whopping $23.75 million worth of Solana being unstaked in a single transaction.

Amid concerns about an incoming sell-off and market dump, here are the transaction details, how Solana has reacted so far, and how it might react going forward.

Millions in Solana Unstaked

Since FTX’s collapse, the exchange has been moving large amounts of Solana around, especially since initial reports that the exchange held massive amounts of the so-called Ethereum killer.

Over time, FTX and its sister company, Alameda Research, have liquidated most of their SOL holdings.

However, it seems that some wallets connected to these two still hold massive amounts of the asset and are selling them off a little at a time.

Recent data from SolScan shows that an address tied to FTX unstaked 177,693 SOL, valued at nearly $24 million on Wednesday this week.

Interestingly, while this unstaking transaction hasn’t seen any SOL being moved to a centralized exchange, there is still massive speculation about an incoming sell-off.

Here’s how market participants are bracing for impact if such a transfer happens eventually.

Could a Solana Sell-off Be on the Horizon?

Usually, when this amount of tokens is unstaked in the crypto market, they are mostly sent straight into a centralized exchange for liquidation.

However, in this case, the funds remain dormant and have not been moved since the transaction first occurred on Wednesday.

Interestingly, though, the FTX address identified as "H4yi…agFZ" on Solscan still holds an astounding 7.1 million SOL, which is worth around $953 million.

For the sake of context, 7.1 million SOL amounts to about 1.5% of the cryptocurrency’s total supply.

If this crypto stash were to be unstaked and used to flood the market, we could see something similar to what happened to Ethereum during the Jump-Trading sell-off, where the trading platform sold off over $400 million ETH.

What Next For Solana?

Solana seems to be in a wonderful place in terms of price action.

According to data from CoinMarketCap, the cryptocurrency is up 2.5% on the daily timeframe and 1.8% on the weekly timeframe, which isn't very impressive in the near term.

However, the charts show a valid entry point for the cryptocurrency, somewhere around the bottom of an ascending trendline.

The bulls have been defending this trendline since March, and according to the charts, the cryptocurrency is attempting to break above its 25-day EMA again for the first time since August.

As shown, if a break below $120 does not occur and forms a new lower low, we can expect the cryptocurrency to explode upwards soon and retest or even break above the top of the channel.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.