Amid the notable fear of a final crypto sell-off before the bullish rebound anticipated to kickstart in the fourth quarter, Solana (SOL) whales have been fleeing the market recently. The large-cap layer-one (L1) altcoin, with a fully diluted valuation of about $78 billion and a daily average traded volume of around $1.7 billion, has faced significant resistance between $122 and $200 in the past five months.
The marvel altcoin, heavily supported by venture capitalists, has been losing ground to Bitcoin as the latter’s dominance continues to gain.
Solana Whales Flee Ahead of FTX Unlocks
According to on-chain data analysis, a Solana whale unstaked 106,213 SOL units, worth about $14.3 million, and deposited the holdings into the Binance exchange, presumably for sale.
Meanwhile, defunct cryptocurrency exchange FTX and its sister firm Alameda Research are expected to unstake and sell its Solana holdings, worth more than $1 billion. Moreover, FTX was ordered to repay creditors up to $16 billion, which the bankrupt firm intends to distribute in stablecoins.
Midterm Expectations
Despite the ongoing Solana whale’s capitulation, technical analysis suggests a potential bullish breakout toward $154 or $187 in the mid-term. Although there are no guarantees, the altcoin has successfully rebounded several times in the past five months from the support level above $122.
If the crypto market follows the ongoing Gold bullish breakout in the near term, Solana’s price will likely retest its all-time high before the end of this year.
Nonetheless, with a consistent close below the crucial support level of around $122, the SOL price will face further bearish sentiment. It might end up retesting the support level around $90, which coincides with the 0.618 weekly Fibonacci Retracement.
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Source: https://coinpedia.org/news/solana-faces-major-whale-sell-off-as-ftx-sells-1b-sol-midterm-price-outlook/