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Highlights
- An Alameda-related address has unstaked $23 million SOL.
- The move threatens to send Solana price tumbling to new lows.
- On-chain indicators are grim for Solana but the ecosystem is sizzling with activity.
Solana price could take a major hit after an Alameda address unstaked $23 million SOL in what appears to be an indicator for a potential selloff. On the technicals, Solana is inching toward a death cross for the third time in its history.
Alameda Unstakes 177,000 SOL Amid Distribution Spree
According to an Arkham post, an Alameda Research-associated address has unstaked $23 million SOL, distributing the funds to several addresses. On-chain data indicates that the Alameda staking address received $22.9 million SOL following a staking address unlock.
Upon receipt of the tokens, the funds were distributed to 37 addresses associated with FTX and Alameda. Cumulatively, the 37 recipient addresses hold $178.82 million SOL, sparking fears of a selloff.
Typically, unstaking large amounts of SOL triggers selling pressure for Solana price. In the event of a sale, excess SOL floods the market and if demands fall to match supply, prices take a massive hit.
A move to exchanges will confirm speculation of a selloff with similar moves historically triggering corrections for Solana price.
At the start of March, Solana whales unstaked nearly $1 billion SOL as prices tumbled to multiple-month lows.
Solana Price Marches Toward Death Cross
Onchain indicators say Solana is approaching a death cross for the third time in its history. The death cross is a bearish signal, occurring when the 50-day moving average crosses below the 200-day moving average.
Achieving a death cross could send Solana price to new lows with previous occurrences proving extremely bearish. The first death cross in 2022 saw prices fall by over 90%, exacerbated by FTX’s implosion.
The second death cross in 2022 saw prices take a nose dive before staging a recovery during the “Trump pump.” Experts say projections for SOL to reach $200 are unlikely as it trades at a six-month low.
At the moment, Solana price is trading at $126.53 down by nearly 15% over the last week. For now, traders are proceeding with caution with the biggest indicator being a steep drop in daily trading volume. Over the last 24 hours, trading volume has fallen by 22.71% to settle at $4.1 billion.
Despite the grim numbers, experts say Solana will outperform Ethereum, citing the network’s impressive functionalities.
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