Solana Faces Sell-Off Fears as FTX Moves $22.9M SOL to Market

Solana’s [SOL] price recovery faces renewed pressure as FTX and Alameda Research offloaded another 185,345 SOL tokens worth $22.9 million, raising concerns about increased sell-side liquidity.

According to Spot On Chain, the bankrupt exchange distributed the SOL across 38 wallets, a part of its ongoing monthly liquidation plan. Despite this latest sale, FTX still holds 5.5 million SOL tokens worth $696 million, with over $1 billion in SOL already offloaded since November 2023.

FTX’s Sell-Off and Solana’s Price Impact

Earlier, on March 4, FTX unstaked and dumped over 3 million SOL worth $432 million, which was part of its scheduled 11.2 million SOL unlock. Despite a short-term dip to $125, the CME Solana Futures announcement in late February helped push SOL back to $180 before retracing.

Currently, SOL is priced at $127, a 57% decline from its all-time high of $295. The market sentiment remains negative, especially as social volume metrics indicate a lack of renewed investor interest in Q1 2025.

Investor Trends: Risk-Off Approach or Opportunity?

Market data suggests a mixed outlook:

• Coinglass reports indicate $100 million in SOL outflows this week, following $319 million in withdrawals during the unlock period last week.
• LookOnChain analysis reveals a new whale wallet purchased $25 million in SOL from Binance, exceeding FTX’s latest unstaked amount.

Despite the risk-off sentiment, some investors may see Solana as undervalued, potentially making it an attractive long-term buy at current levels.

Key Price Levels: Will SOL Hold Support?

From a technical perspective:

✅ Strong support: $120 – a key 2024 level that must hold to maintain bullish prospects.✅ Safer long entry: A breakout above key moving averages would signal renewed buying momentum.❌ Bearish scenario: A drop below $120 could send SOL tumbling to $100.

What’s Next for Solana?

To reverse its 57% losses, Solana will need a significant demand boost to absorb the selling pressure from FTX liquidations. Whether the market sees this as a buy-the-dip opportunity or a continued risk-off trend remains to be seen.

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