Solana Price At Risk As Alameda Unstakes $23 Million SOL

Solana price could take a major hit after an Alameda address unstaked $23 million SOL in what appears to be an indicator for a potential selloff. On the technicals, Solana is inching toward a death cross for the third time in its history.

Alameda Unstakes 177,000 SOL Amid Distribution Spree

According to an Arkham post, an Alameda Research-associated address has unstaked $23 million SOL, distributing the funds to several addresses. On-chain data indicates that the Alameda staking address received $22.9 million SOL following a staking address unlock.

Upon receipt of the tokens, the funds were distributed to 37 addresses associated with FTX and Alameda.  Cumulatively, the 37 recipient addresses hold $178.82 million SOL, sparking fears of a selloff.

Typically, unstaking large amounts of SOL triggers selling pressure for Solana price. In the event of a sale, excess SOL floods the market and if demands fall to match supply, prices take a massive hit.

A move to exchanges will confirm speculation of a selloff with similar moves historically triggering corrections for Solana price.

At the start of March, Solana whales unstaked nearly $1 billion SOL as prices tumbled to multiple-month lows.

Solana Price Marches Toward Death Cross

Onchain indicators say Solana is approaching a death cross for the third time in its history. The death cross is a bearish signal, occurring when the 50-day moving average crosses below the 200-day moving average.

Achieving a death cross could send Solana price to new lows with previous occurrences proving extremely bearish. The first death cross in 2022 saw prices fall by over 90%, exacerbated by FTX’s implosion.

The second death cross in 2022 saw prices take a nose dive before staging a recovery during the “Trump pump.” Experts say projections for SOL to reach $200 are unlikely as it trades at a six-month low.

At the moment, Solana price is trading at $126.53 down by nearly 15% over the last week. For now, traders are proceeding with caution with the biggest indicator being a steep drop in daily trading volume. Over the last 24 hours, trading volume has fallen by 22.71% to settle at $4.1 billion.

Despite the grim numbers, experts say Solana will outperform Ethereum, citing the network’s impressive functionalities.

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Aliyu Pokima

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.