Solana’spricecouldfacefurtherdownwardpressureastheSOLstakingaddressassociatedwithFTX/Alamedaredeems178,631SOL,valuedatapproximately$28million.
IfasignificantportionoftheredeemedSOLissoldonexchanges,thealtcoin’svaluemaydeclinebydoubledigits.Thequestionremains:howsoonwillthishappen?
SolanaAtRiskAsFTXMakesaMove
EarlyTuesday,theSOLstakingaddressbelongingtoFTX/Alamedaredeemedanother178,631SOLcoinsvaluedabove$128millionatcurrentmarketprices.
AccordingtoSolscan,thismarksthelatestinaseriesofregularredemptionsandtransfersofSOLfromthisaddress,withroughly170,000SOLbeingredeemedandmovedoutaroundthe12to15ofeachmonth.
Readmore:HowtoBuySolana(SOL)andEverythingYouNeedToKnow
FTX/AlamedaStakingAddressActivity.Source:Solscan
TherecentlyredeemedSOLtokensarelikelytoflowintoexchangeslikeCoinbaseorBinanceforsale,particularlyafteraDelawarejudgeapprovedFTX’sreorganizationplan,whichallocatesover$14billioninpayoutstocustomersofthecollapsedcryptocurrencyexchange.Ifthishappens,itcouldleadtoatemporarydeclineinSOL’spriceinthenearterm.
However,tradersmayresteasyasSOLcurrentlybenefitsfromthegeneralmarketuptrend.Thealtcoinistradingat$154.56asofthiswriting,notingan8%priceuptickoverthepastweek.Itenjoysabullishbias,asevidencedbyitsParabolicStopandReverse(SAR)indicator.
SolanaParabolicStopandReverse.Source:TradingView
Thisindicatoridentifiesanasset’strenddirectionandpotentialreversalpoints.ItsdotsrestaboveSolana’spriceatpresstime,suggestingthatthealtcoinisinanuptrend.Tradersinterpretthisasasignaltoeitherholdoropenlongpositions.
SOL’sRelativeStrengthIndex(RSI)supportsthisbullishoutlook.At59.51,thecoin’sRSI,whichmeasuresitsoversoldandoverboughtmarketconditions,indicatesthatSolanaisgainingstrengthandexperiencingabullishtrend.
SolanaRSI.Source:TradingView
SOLPricePrediction:AllRestsinFTX’sHandsNow
Solanaiscurrentlytradingat$155.18,shyoftheresistancelevelof$159.77.Ifthebullishmomentumcontinues,thepricecouldbreakabovethislevelandaimfor$186.29,ahighlastseeninJuly.
Readmore:13BestSolana(SOL)WalletstoConsiderinOctober2024
SolanaPriceAnalysis.Source:TradingView
However,SolanamayloseitsrecentgainsonceFTXbeginsliquidatingitsredeemedtokenswithoutsufficientdemandtooffsettheincreasedsupply.A15%declinecouldpushitspricedowntothesupportlevelof$131.04.
Ifthissupportfailstohold,Solana’spricecouldseefurtherdownside,droppingto$109.55.
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