Amid a bearish market sentiment, major cryptocurrencies are showing signs of recovery following a significant price drop in recent days.
On September 12th, a distressed FTX/Alameda-associated wallet address with the name “H4yiPh” unstaked a substantial 177,693 Solana [SOL] tokens, valued at $23.75 million.
FTX/Alameda Unstaking SOL
According to Lookonchain, the company withdrew these significant tokens from Solana’s Proof of Stake (PoS) system, leading to speculation that they might be moved to centralized exchanges in the future.
Unstaking is often viewed as a bearish sentiment within the crypto community. Investors and institutions frequently unstake their tokens in anticipation of a price decline or in preparation for selling, creating selling pressure and causing price drops.
Price Momentum Update
As of the latest data, the recent unstaking has not affected Solana’s price. At present, SOL is trading at $134.75, showing a 2.15% increase in the last 24 hours.
Trade volume has also risen by 10%, suggesting increased trader engagement despite market uncertainty.
Despite trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, SOL appears bullish with a potential breakout above the critical $138.2 level. If the token successfully breaches and closes above this level, a significant price surge of over 33% towards $185 could be in the cards.
However, the bullish scenario for SOL’s daily chart may be compromised if the FTX/Alameda-related wallet shifts the notable tokens to centralized exchanges (CEXes).
SOL’s Positive On-Chain Metrics
Solana’s positive trajectory is bolstered by on-chain statistics. Coinglass’s Long/short ratio is currently at 1.07, the highest since August 2024.
Furthermore, top traders exhibit a 51.7% long position sentiment, contrasting with a 48.3% short position sentiment.
Moreover, SOL’s Futures Open Interest has increased by 4%, indicating bullish sentiment among traders who are potentially constructing larger long positions.
The major liquidation thresholds are positioned near $133.5 on the downside and $136.95 on the upside, reflecting trader over-leverage at these levels as per Coinglass data.
If the market sustains its bullish sentiment and SOL climbs to $136.95, short positions worth nearly $22.03 million may face liquidation.
Conversely, in a sentiment reversal leading to a drop to the $133.5 level, long positions worth around $31.23 million could be liquidated.