Solana’s price has fallen below the critical $125 support level, driven by increased selling pressure from wallets linked to FTX and Alameda Research. The continued liquidation of SOL assets to repay creditors has fueled market uncertainty, leaving traders wary of further downside risks.
On March 13, Solana lost over 5% in a single day after Alameda Research unstaked and transferred $23 million worth of SOL to multiple wallets. According to blockchain data from Arkham Intelligence, this transaction is part of an ongoing pattern of sell-offs linked to the FTX bankruptcy.
Key details include:
- 8 million SOL (nearly $1 billion) unstaked since November 2023
- 3 million SOL (valued at $432 million) unlocked in early March
- 5.5 million SOL (approx. $693 million) still controlled by FTX and Alameda
These transactions have weighed heavily on SOL’s price, preventing it from rebounding alongside other major cryptocurrencies like XRP and ADA.
Solana’s Price Faces Key Technical Levels
From a technical standpoint, Solana faces significant hurdles in reclaiming lost ground. After briefly touching $131, SOL failed to hold gains and slipped back under $125. Analysts now point to $112 as a potential bottom if the current bearish trend continues.
Key technical insights:
- Resistance at $127 has seen multiple rejections, making it a crucial level
- Elliott Wave analysis suggests a potential reversal near $112
- A major sell wall at $180 could limit upside potential, while a buy wall offers some support at current levels
According to analyst CryptoUB, a decisive break above $127 could shift sentiment bullish, while continued weakness below may encourage short-sellers to drive SOL lower.
Will Solana Recover, or Is More Downside Likely?
Despite broader market stability, Solana remains under pressure due to its exposure to FTX liquidations. Until the remaining 5.5 million SOL under FTX’s control is fully liquidated, traders may remain cautious about accumulating the asset.
However, some bullish catalysts could help SOL recover:
- Improved macroeconomic conditions (cooling inflation)
- Rising institutional interest in layer-1 blockchain projects
- Potential market rotation back into high-performance altcoins
For now, Solana’s future largely hinges on how quickly FTX-related sell pressure fades. If demand can absorb the remaining liquidations, SOL could see a strong rebound. Otherwise, further declines remain a possibility.