FTX Offloads SOL Amid $16B Repayment Plan, Solana Dips 20%

• FTX/Alameda unstaked 3.03M SOL ($432.5M), likely for exchange deposits, marking the largest unstake since Nov 2023.
• FTX begins $16B creditor repayments, with $6-7B returning to investors, possibly boosting liquidity if reinvested.
• Solana fell 20.63% to $141.93, facing strong selling pressure and bearish momentum amid FTX’s SOL offloading.

Spot On Chain reports that FTX/Alameda unstaked and distributed 3.03 million SOL, worth $432.5 million, to 37 wallets. The move likely signals deposits to Coinbase and Binance. This marks the largest unstake since November 2023. Besides, it is part of the 11.2 million SOL ($1.5 billion) set for unlocking in early March. Since November, FTX/Alameda has unstaked and offloaded 7.83 million SOL ($986 million) at an average price of $125.8.

FTX’s Creditor Repayment and Market Impact

FTX’s unstaking aligns with its decision to begin creditor repayments this month. The exchange aims to distribute $16 billion in phases. Initially, creditors with claims under $50,000 will receive $1.2 billion. The repayment process started on February 18 at 3 AM UTC. The first phase will distribute between $6.5 billion and $7 billion.

Crypto analyst Miles Deutscher noted that $6-7 billion will return to investors. Consequently, if a portion re-enters the market, liquidity could rise. Louis Origny, co-founder of FTXcreditor.com, shared insights with journalist Tiffany Tong. He stated that creditors with claims above $50,000 may receive 175% of their original claims. 

However, the timeline for larger repayments remains unclear. The process is expected to start in Q2 2025, with $16 billion disbursed in stages. Notably, 50% of the repayment amount will be withheld to settle disputed claims.

Solana’s Price Movement and Market Analysis

Solana’s price on Binance saw a sharp 20.63% drop within a session, trading at $141.93. The session’s high of $179.53 fell to a low of $140.21, reflecting strong selling pressure. Additionally, volume surged, confirming bearish momentum.

The Bollinger Bands indicate high volatility as the price broke below the lower band before a brief rebound. Moving averages suggest a bearish structure, with Solana trading below key levels. The price tested a critical support zone between $128 and $155. However, it failed to sustain upward movement, facing rejection near $170.

The market structure remains bearish, with lower highs and lower lows. The price previously attempted to break the $190–$210 range multiple times but failed. Since peaking near $260, Solana’s trend has shifted downward. Consistent rejections at lower resistance levels highlight ongoing bearish sentiment.