Alameda’s $23M SOL Unstaking Sparks Selloff Fears as Solana Nears Death Cross

• Alameda unstaked $23M SOL, distributing it to 37 FTX-linked addresses holding $178.82M SOL, sparking selloff fears.

• Solana nears a death cross, with past occurrences leading to 90%+ declines, dimming $200 price projections.

• SOL trades at $125.47, down 15% weekly; daily volume dropped 22.71% to $4.1B, signaling reduced market activity.

An Alameda Research-linked address has unstaked $23 million worth of Solana (SOL), raising concerns of a potential selloff. On-chain data reveals the funds were distributed to multiple addresses linked to FTX and Alameda, intensifying fears of market pressure. Historically, such large-scale unstaking events have triggered price downturns.

Alameda’s Unstaking Raises Market Concerns

Arkham Intelligence posted that Alameda Research distributed the unstaked SOL to 37 addresses linked to FTX. In total, these addresses now hold approximately $178.82 million SOL. It has sparked speculation that a large-scale selloff could flood the market, leading to substantial price declines if demand fails to match the increased supply.

Historically, when many SOL holders unstake their holdings, a decrease in the market prices is observed. To give you an idea, remember that a couple of months ago one of the wealthy Solana players had withdrawn almost $1 billion of SOL, which resulted in the price dropping to rock bottom. The most probable outcome of users moving the funds which have been just freed up for trading will be the consolidation and then a selloff.

Alameda Research has a history of moving significant assets post-bankruptcy. In late 2023, it staked $10 million in MATIC and transferred Ethereum worth $14.75 million in early 2024. These transactions caused noticeable price fluctuations in the respective assets. However, Solana’s price has remained relatively stable despite this latest movement of funds.

Currently, Solana trades at $125.47, down nearly 15% over the past week. Additionally, daily trading volume has dropped by 22.71% in the last 24 hours, settling at $4.1 billion which indicates reduced market participation and heightened caution among traders.

Solana’s Technical Indicators Signal Bearish Outlook

Adding to market concerns, Solana is inching toward a death cross for the third time in its history. A death cross occurs when the 50-day moving average crosses below the 200-day moving average, signaling a bearish trend. Previous death crosses resulted in severe price declines for Solana.

The first death cross in 2022 saw SOL’s price plummet by over 90%, exacerbated by FTX’s collapse. The second occurrence led to a sharp decline before a temporary recovery fueled by the “Trump pump.” Analysts believe that projections for Solana to reach $200 are now unlikely, given the current bearish signals.

Alameda’s intentions regarding the unstaked SOL remain unclear. While FTX has begun creditor repayments, this process will take time. Earlier this month, FTX unlocked Solana tokens worth $1.57 billion, possibly as part of its restructuring efforts. Whether these unlocked SOL tokens will be sold or redistributed remains uncertain.

The current cryptocurrency market is in an extreme state of fear and major coins are undergoing massive sell-offs. Alameda’s actions may add to the confusion, but they are only one of the many factors influencing the whole ecosystem of digital assets. Some analysts believe that Solana’s strong fundamentals may enable it to surpass Ethereum at some point in the future.

Read More: Solana (SOL) At Risk of Falling Below $110 After 38% Plunge