Solana Faces Selling Pressure as Alameda Moves $23M in Unstaked SOL

• Alameda Research unstaked $23 million in SOL, distributing funds to 37 addresses linked to FTX and Alameda, raising concerns over selling pressure.
• Solana’s price dropped by 15% this week, with trading volume declining by 22.71%, reducing investor confidence and potential downside risks.
• Technical indicators show Solana nearing a bearish death cross, historically linked to sharp price declines, raising uncertainty about future price recovery.

Solana’s price faces renewed pressure following a significant unstaking event by an Alameda Research-linked wallet. Blockchain data confirms that an address associated with Alameda withdrew $23 million worth of SOL and distributed the funds across multiple addresses. On-chain activity reveals that the staking address unlocked $22.9 million SOL before transferring assets to 37 affiliated wallets linked to Alameda and FTX.

The cumulative holdings of these addresses now total approximately $178.82 million in SOL, fueling speculation of a potential selloff. Historically, large unstaking events have resulted in increased selling pressure, often leading to price declines. If these funds are moved to exchanges, the likelihood of a significant downturn in Solana’s price increases.

Potential Market Impact of Alameda’s SOL Unstaking

Historically, the mass unstaking of SOL has signaled impending market corrections. Earlier this month, whales unstaked nearly $1 billion in SOL, leading to a decline in Solana’s price. A similar event occurred in previous instances when unstaked tokens flooded the market, triggering a price drop as demand struggled to match supply.

Experts track Solana trading at $126.53 since the price declined by 15% during the last week. Trading volume has weakened by 22.71% throughout the past day to reach $4.1 billion. When investors lose confidence, trading activities diminish, and this situation intensifies price drops.

The Solana token shows signs of a death cross formation through technical indicators, which serves as an important bearish indicator. A death cross in the cryptocurrency occurs when the shorter-term moving average drops below the longer-term moving average. The historical appearance of this pattern before led to severe price drops for Solana.

The technology network Solana faced its initial death cross in 2022, which triggered a destructive 90% value loss, which intensified due to the FTX collapse. The “Trump pump” phase followed the second death cross after prices fell through the year. The current market shows indications that Solana will struggle to reach its projected $200 mark.

The market conditions have persuaded traders to take a reserved approach. Market worries for protracted downward price movements increase because Alameda continues to reduce its SOL stake while bearish technical signals persist. Attention of investors remains focused on unstaked SOL transfer activities to exchanges since such movements will support existing expectations about an upcoming price drop.