Will Solana rally 33% despite FTX’s $24M unstake?

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SOL appeared bullish at press time, on the verge of breaking out of the crucial level.
If SOL closes a daily candle above $138.2, it could experience a price surge of over 33% to the $185 level.

In the current bearish market sentiment, major cryptocurrencies appeared to be recovering after experiencing a massive price decline in recent days.

Amid this, on the 12th of September, bankrupt FTX/Alameda-linked wallet address “H4yiPh” unstaked a significant 177,693 Solana [SOL] tokens, worth $23.75 million.

FTX/Alameda wallet unstakes SOL

Per Lookonchain, the firm has withdrawn these substantial tokens from Solana’s Proof of Stake (PoS) system, and there is a high possibility they could be transferred to centralized exchanges in the future.

The crypto community often considers unstaking as a bearish sentiment.

Mostly, investors or institutions unstake their tokens as they believe that a price drop in underway, or are preparing to sell their tokens. This creates massive selling pressure, resulting in significant price declines.

Current price momentum

As of press time, Solana had not seen any impact from the recent unstaking on its price. At press time, SOL traded at $134.75 after a price surge of over 2.15% in the last 24 hours.

Its trading volume increased by 10% during the same period, indicating higher participation from traders despite uncertainty in the market.

Moving ahead, SOL appeared bullish on the price charts despite trading below the 200 Exponential Moving Average (EMA) on the daily time frame.

Additionally, the token was on the verge of breaking out of the crucial level of $138.2. If SOL breaks this level and closes a daily candle above it, the token could experience a massive price surge of over 33% to the $185 level.

Source: TradingView

However, if the FTX/Alameda-linked wallet moves those notable tokens to centralized exchanges (CEXes), the bullish thesis may not hold on SOL’s daily chart.

SOL’s bullish on-chain data

Solana’s bullish outlook was further supported by on-chain data. Notably, Coinglass’s Long/short ratio was 1.07 at press time, the highest since the beginning of August 2024.

Additionally, 51.7% of top traders held long positions, while 48.3% held short positions.

Source: Coinglass

Meanwhile, SOL’s Futures Open Interest increased by 4%, showing that traders’ sentiments were bullish, and they were potentially building larger long positions.

As of now, the major liquidation levels were near $133.5 level on the lower side and $136.95 on the upper side, as traders are over-leveraged at these levels, according to Coinglass data.