Solana Price Dip: Alameda's SOL Unstaking Sparks Concerns
Solana (SOL) price is facing potential headwinds after an Alameda Research-associated address unstaked $23 million worth of SOL. This action, coupled with Solana's approach to a third historical death cross, has raised concerns about a potential price drop.
Alameda Unstakes Significant SOL Holdings
According to Arkham Intelligence, an Alameda address unstaked the aforementioned SOL, subsequently distributing it to 37 addresses linked to FTX and Alameda. These recipient addresses now collectively hold $178.82 million in SOL, fueling speculation of a market sell-off. Historically, large-scale SOL unstaking events have preceded periods of increased selling pressure and price declines.
The movement of these funds to exchanges would confirm these sell-off fears. A significant influx of SOL into the market, without a corresponding increase in demand, could lead to a substantial price drop. This echoes a similar event in March, when Solana whales unstaked nearly $1 billion in SOL, resulting in a significant price decline.
Impending Death Cross Adds to Bearish Sentiment
Adding to the bearish outlook, Solana is nearing a death cross for the third time. This technical indicator, where the 50-day moving average crosses below the 200-day moving average, is typically considered a bearish signal. Previous death crosses in 2022 correlated with significant price drops, exceeding 90% in one instance, exacerbated by the FTX collapse.
While some predict a potential rise to $200, this seems unlikely given the current six-month low and the looming bearish signals. The current trading price of SOL is around $126.53, down almost 15% over the past week, with daily trading volume falling by 22.71% to $4.1 billion in the last 24 hours.
Despite these negative indicators, some experts maintain a positive long-term outlook for Solana, emphasizing the network's capabilities. However, the current market conditions necessitate caution.
Disclaimer: This analysis reflects the current market situation and is subject to change. Conduct thorough research before making any investment decisions. Codeum is not responsible for individual financial losses.
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