Solana (SOL) is at risk of a significant price drop following a massive unstaking event linked to Alameda Research. On-chain data suggests that an Alameda-associated address has unstaked $23 million worth of SOL, raising concerns about a potential selloff. Compounding bearish sentiment, Solana is nearing a death cross—a historically bearish technical indicator that has previously led to sharp declines.
Alameda Unstakes 177,000 SOL, Sparks Selloff Concerns
Blockchain analytics platform Arkham reports that an Alameda Research-linked address recently unstaked 177,000 SOL, equivalent to $23 million. The unstaked funds were distributed across 37 addresses linked to both Alameda and FTX, collectively holding $178.82 million SOL. Such large movements often indicate imminent sell pressure, as unstaked assets are typically transferred to exchanges for liquidation.
ARKHAM ALERT: ALAMEDA ADDRESS JUST UNSTAKED $23M SOL TO 38 NEW ADDRESSES
— Arkham (@arkham) March 12, 2025
An FTX/Alameda Staking address received $22.9M SOL from a staking address unlock and has just distributed these funds to 37 addresses that have previously received SOL from this address.
These addresses… pic.twitter.com/9eWuKAY4na
Historically, large unstaking events have triggered price corrections for Solana. If these funds are offloaded into the market, the increased supply could significantly depress SOL’s price, especially if demand fails to match the influx of tokens.
Solana Inches Toward Death Cross
In addition to potential selling pressure, Solana’s price charts indicate an imminent death cross, a bearish technical pattern where the 50-day moving average falls below the 200-day moving average. This phenomenon has only occurred twice in Solana’s history, each time leading to dramatic price drops.
- The first death cross in 2022 coincided with a 90% price crash, exacerbated by the collapse of FTX.
- The second death cross in late 2022 saw SOL plummet before experiencing a recovery during the “Trump pump.”
If history repeats, SOL could see another steep decline, casting doubt on bullish projections that previously targeted a return to $200.
Market Sentiment and Trading Volume Drop
At press time, Solana is trading at $126.53, down nearly 15% in the past week. Additionally, trading volume has plummeted by 22.71% in the last 24 hours, settling at $4.1 billion—a sign that traders are proceeding with caution.
Also Read: Solana (SOL) at a Critical Crossroads: Will Key Support Hold or a Deeper Drop Loom?
Despite these bearish indicators, some experts remain optimistic about Solana’s long-term outlook, citing the network’s speed and cost-efficiency as key advantages over Ethereum. However, in the short term, SOL faces increased volatility amid fears of a large-scale liquidation.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
