Solana (SOL) Price Drops Below $125 Amid FTX Liquidations

FTX and Alameda Transactions Drive Selling Pressure

Solana’s price has fallen below the key $125 support level, sparking concerns among investors. The decline follows a series of large transactions from wallets linked to FTX and Alameda Research, which appear to be related to ongoing asset liquidations for creditor repayments. The timing of these movements has amplified bearish sentiment, intensifying downward pressure on SOL.

On March 13, Solana’s price dropped by 5% after Alameda Research unstaked over $23 million worth of SOL. According to Arkham Intelligence, these tokens were distributed across 38 different addresses, fueling fears of additional selling pressure. Earlier sell-offs from FTX-affiliated wallets have also contributed to the decline, as traders worry that further unstaking could lead to even lower prices.

Analysts note that the increased supply of SOL in the market could limit any potential short-term recovery. With uncertainty surrounding FTX’s remaining holdings, traders are reluctant to enter long positions, leading to continued price stagnation.

FTX’s Solana Liquidations and Market Impact

FTX and Alameda Research have been systematically offloading Solana assets since November 2023, unstaking roughly 8 million SOL tokens worth nearly $1 billion. Many of these tokens have already been sold through major exchanges like Binance and Coinbase. The most significant event occurred in early March, when FTX unlocked over 3 million SOL tokens valued at approximately $432 million.

Despite broader market strength during that period, Solana lagged behind other major altcoins like XRP and ADA, struggling under the weight of FTX’s continuous liquidations. The remaining 5.5 million SOL tokens under FTX’s control, currently valued at around $693 million, pose an ongoing risk of further price declines.

Even as the broader market benefits from cooling inflation trends, Solana’s rebound potential remains limited. Until the overhang of FTX-controlled assets clears, traders may remain cautious, fearing continued sell-offs that could prevent SOL from regaining bullish momentum.

Solana Price Technical Analysis and Future Outlook

From a technical standpoint, Solana’s price action remains bearish. After briefly reclaiming the $131 level, SOL quickly reversed, breaking below the crucial $125 support. If this level fails to hold, analysts suggest further downside is likely, with some pointing to a potential support zone around $112 based on Elliott Wave patterns.

Crypto analyst CryptoUB highlighted that the $127 level has faced multiple rejections, making it a crucial pivot point for traders. “Above = longs, Below = shorts,” the analyst noted, suggesting that price consolidation at this level aligns with key daily support and resistance zones.

Another trader, CW8900, identified a significant sell wall around the $180 mark but also noted strong buy support at current levels. If Solana breaks out of its current downtrend and surpasses the $180 resistance, it could retest its previous highs. However, until the impact of FTX’s liquidations subsides, bearish sentiment is likely to persist, keeping SOL under pressure in the near term.

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