Solana Price Under Threat as Alameda Unstakes $23 Million in SOL

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Solana price could face significant downward pressure following the recent unstaking of $23 million in SOL by an address linked to Alameda Research. This move is being seen as a potential indicator for an impending selloff, and there are growing concerns that it could trigger a sharp decline in the cryptocurrency’s value. On the technical front, Solana is nearing a death cross, which would be the third occurrence in its history, further compounding the fears of a price drop.

Alameda Unstakes 177,000 SOL Amid Distribution of Funds

According to a post by Arkham, an address associated with Alameda Research has unstaked a substantial amount of SOL, totaling $23 million. The funds were then distributed across several different addresses, leading many to speculate that this could signal a selloff is imminent. On-chain data reveals that the Alameda staking address received a total of 22.9 million SOL after a staking address was unlocked. Once the tokens were received, they were spread across 37 addresses that are connected to FTX and Alameda, holding a collective $178.82 million SOL.

This distribution of SOL has raised alarms in the market, as such large-scale unstaking usually leads to selling pressure on Solana’s price. When a large volume of SOL enters the market, it can overwhelm demand, leading to a steep drop in price. If the tokens begin to flow into exchanges, it would confirm the market’s fears of a potential selloff, similar to past instances that have resulted in sharp declines for Solana.

At the beginning of March, Solana whales unstaked nearly $1 billion worth of SOL, contributing to the fall in prices to their lowest levels in months. This pattern of unstaking and distribution is a clear signal of possible future selling pressure.

Solana Price Approaching Death Cross

Adding to the bearish outlook, on-chain indicators show that Solana is approaching a death cross for the third time in its history. A death cross occurs when the 50-day moving average crosses below the 200-day moving average, a well-known bearish signal in technical analysis. If this event takes place, it could signal further downside for Solana’s price, pushing it toward new lows.

Previous instances of the death cross have resulted in substantial price drops for Solana. The first death cross, which took place in 2022, saw prices plummet by more than 90%, an event further exacerbated by the implosion of FTX. The second death cross in the same year also saw prices dive before recovering during the so-called “Trump pump,” but the overall sentiment remained overwhelmingly negative.

Experts are now projecting that Solana will face difficulty reaching previous high targets, such as the $200 mark. As of now, the cryptocurrency is trading at around $126.53, down nearly 15% in the last week. The outlook appears bleak as traders proceed cautiously, with one of the most telling indicators being a sharp decline in daily trading volume. In the past 24 hours, trading volume has dropped by 22.71%, settling at $4.1 billion.

Despite these concerning figures, some analysts maintain a more optimistic view of Solana, suggesting that the network’s robust functionalities could allow it to outperform Ethereum in the long run. However, for the time being, the price action and technical indicators suggest that Solana is facing a tough road ahead.