Solana Sees Price Surge Following $24 Million Unstaked by FTX: Is a 33% Rally Possible?
Amidst the prevailing pessimistic market sentiment, leading cryptocurrencies seem to be bouncing back from a significant price slump in recent times.
On September 12th, the insolvent FTX/Alameda-affiliated wallet address “H4yiPh” unstaked a substantial 177,693 Solana [SOL] tokens valued at $23.75 million.
FTX/Alameda Wallet Withdraws SOL
According to Lookonchain, the company has retrieved these sizable tokens from Solana’s Proof of Stake (PoS) system, with a likelihood of them being shifted to centralized exchanges in the upcoming days.
The crypto community typically perceives unstaking as a sign of bearish sentiment. This often occurs when investors or institutions unstake their tokens under the assumption that a price decline is imminent, or in preparation for selling, consequently creating substantial selling pressure leading to noteworthy price drops.
Current Price Movement
Despite the recent unstaking, Solana’s price has not shown any discernible impact. At present, SOL is trading at $134.75, registering a 2.15% surge in the last 24 hours.
Furthermore, its trading volume has surged by 10% during the same period, indicating increased engagement from traders notwithstanding market uncertainties.
Solana appears to exhibit bullish tendencies on the price charts, even though it is trading below the 200 Exponential Moving Average (EMA) on the daily timeframe. Moreover, the token is approaching a critical breakthrough level of $138.2. A breach and subsequent daily candle closing above this mark could potentially trigger an impressive 33% price surge towards the $185 range.
Nevertheless, if the FTX/Alameda-linked wallet opts to transfer the significant tokens to centralized exchanges (CEXes), the bullish scenario highlighted on SOL’s daily chart may lose momentum.
SOL’s Optimistic On-chain Indicators
Solana’s positive outlook is further reinforced by on-chain statistics. Notably, Coinglass’s Long/Short ratio stands at 1.07 currently, marking the highest reading since August 2024.
Moreover, 51.7% of major traders have adopted long positions, while 48.3% have assumed short positions.
Meanwhile, SOL’s Futures Open Interest has climbed by 4%, indicating a bullish sentiment among traders who are potentially establishing larger long positions.
Presently, significant liquidation thresholds are identified near the $133.5 level on the downside and $136.95 on the upside, as per Coinglass data which suggests traders being excessively leveraged at these levels.
If the bullish market sentiment endures and SOL’s price escalates to the $136.95 level, approximately $22.03 million worth of short positions could face liquidation.
In contrast, a sentiment reversal leading to a price decline to the $133.5 level could result in the liquidation of around $31.23 million worth of long positions.