Can Solana defend $80 after FTX/Alameda’s $16.2mln unstake?

Solana has struggled to maintain upward momentum, hovering between $80 and $85. As of this writing, SOL traded at $81, after slightly dropping 0.4% on the daily chart.

With the altcoin down 41% the last three months, some investors, including institutions, have turned bearish. 

FTX/Alameda unstakes $16.21 million worth of SOL

Staking on Solana [SOL] has experienced significant growth, positioning the ecosystem in a strongly competitive position. 

Inasmuch as SOL staked has grown extensively, rising to over 424.5 million of the total supply. Out of the total supply of 624 million, 364.7 million is staked on the Solana network, while 59.8 million is liquid staking. 

With the surge in staked tokens, SOL has faced significant pressure occasionally from unstaking individuals and institutions. One of the recent investors to unstake is the FTX Alameda. 

After a one-month break, FTX/Alameda returned and unstaked 198,426 SOL, worth $16.21 million, according to Onchain Lens. Previously, the team unstaked 197,637 tokens worth $17 million. 

Market players unstake for several reasons, while not always bearish. Often, during a period of weakness, they are reluctant to sell, either to avoid losses or realize gains. 

Despite the recent unstaking by FTX/Alameda, stakers continue to enter the market, with over 336k, or 0.08%, of stakers activating their stakes. 

Any impact on SOL price?

Notably,  FTX unstaking has previously had minimal impact on SOL price action. For instance, the previous unstaking event saw SOL move by barely $1 and remained at $86.

Unsurprisingly, even the latest unstaking has not moved the market, and SOL remains stuck around $81. The altcoin has shown some strength, largely supported by demand from the spot market.

Looking at the Spot activity, the altcoin recorded $141.3 million in Spot Outflows compared to $132.3 million in inflows.

As a result, the altcoin’s Spot Netflow dropped 22251% to -$8.9 million. Such a drop suggested that the recent price drop created another buying window, and traders have attempted to defend the $80 support aggressively.

Despite this accumulation, the market remains structurally bearish, and the trend is stubbornly bearish. In fact, the altcoin’s DMI Modified has remained negative since late March and is currently at -3.1, indicating a strong downtrend.

These market conditions pointed towards the continuation of the prevailing trend. If the weakness persists, SOL could breach $80 and drop to $78 in the short term.

However, the Future Grand Trend indicated a likelihood of sideways movement, with resistance at $86.

Final Summary

• Solana [SOL] has dropped 41% over three months, pushing both retail and institutional sentiment bearish.
• Large Solana [SOL] unstaking events, including FTX/Alameda’s $16M move, have not triggered meaningful price reactions.