Solana (SOL) Price Drops Below $125 Support as FTX-Linked Wallets Unload Millions of Tokens

Solana's price has recently dropped below the $125 support level, causing concern among investors and market watchers. The drop comes amid large transactions involving wallets linked to FTX and Alameda Research.

Recently, Solana’s price has dropped below the $125 support level. This has raised concerns among investors and market watchers.

The drop comes amid large transactions involving wallets linked to FTX and Alameda Research. These moves are being made as part of the ongoing liquidation of assets for creditor repayments.

However, the timing of these transactions has led to increased bearish sentiment around Solana, which is already struggling with its recent price performance.

FTX and Alameda Transactions Factor into Solana Price Today

On March 13, Solana price showed a sharp price pullback, decreasing by 5% on the day. This came after a major transfer of Solana tokens from Alameda Research.

According to Arkham Intelligence, Alameda unstaked over $23 million in SOL, distributing the funds across 38 different addresses. This action followed earlier signs of a sell-off from FTX-linked wallets, which is adding to the bearish market sentiment around the crypto.

ARKHAM ALERT: ALAMEDA ADDRESS JUST UNSTAKED $23M SOL TO 38 NEW ADDRESSES

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

— Arkham (@arkham) March 12, 2025

As seen in the above graphic, these FTX and Alameda-linked wallets have been busy distributing large amounts of SOL tokens to various addresses, which could increase the available supply on exchanges.

With potential buyers becoming more cautious due to the growing sell pressure and the potential for more unstaking to exert further downward price action, the timing of these transactions is crucial.

Unstaking Activity of FTX and Its Impact on Solana

FTX’s involvement with Solana goes beyond the March 12 transaction. Since November 2023, FTX and its trading arm, Alameda Research, have unstaked roughly 8 million SOL tokens, valued at nearly $1 billion.

Many of these tokens have already been sold through major exchanges like Coinbase and Binance, which is likely contributing to the downward trend in Solana’s price.

The most notable of these events occurred in early March when FTX unlocked over 3 million SOL tokens, which amounted to approximately $432 million.

Despite some positive momentum in the broader market at the time, Solana’s price remained sluggish. This lag in performance compared to other altcoins, such as XRP and ADA, highlights the pressure being placed on Solana by the ongoing liquidation of assets tied to FTX.

FTX’s liquidations have also affected other cryptocurrencies, including Ethereum. In February, FTX sold a significant portion of its Ethereum holdings to Binance, further indicating the scale of the liquidation efforts undertaken by the bankrupt exchange.

Potential for More SOL Price Weakness

As it stands now, SOL price is still largely subject to the ongoing liquidation process undertaken by FTX. Those in the crypto space are monitoring the 5.5 million SOL tokens, currently valued at around $693 million, that remain under the control of FTX and Alameda.

These assets are still poised to be unstaked or sold, which continues to risk additional downward pressure on Solana’s price.

Despite improving broader market conditions, such as the cooling inflation trend signaled by the latest U.S. CPI and PPI data, which could bode well for crypto prices, Solana’s potential for a price rebound seems limited.

As long as these assets remain in the hands of FTX and its affiliates, traders may be reluctant to accumulate Solana, fearing further sell-offs. This overhang of potential selling may prevent Solana from regaining its upward momentum in the near term.

Solana Price Technical Outlook and Market Sentiment

From a technical analysis perspective, Solana’s price action is still showing signs of pressure. After briefly reclaiming the $131 mark on March 12, SOL price faced a quick reversal as bearish sentiment returned.

The Solana price has since dipped below the $125 support, which is now seen as a critical level for future price action. Technical analysis suggests that if Solana price fails to hold above these levels, we could see more downside. Some analysts are also spotting an Elliott Wave pattern that suggests a potential reversal point around $112.

According to crypto analysts CryptoUB, this level at $127 has seen triple rejections, suggesting it could be a critical point for both long and short trading strategies. “Above = longs, Below = shorts,” the analyst stated.

The price consolidation on the 4-hour chart aligns with the daily level, presenting a strong case for a short position, according to CryptoUB.

Another market participant, CW8900, pointed out a prominent sell wall at around the $180 price point for Solana, but a solid buy wall at the current price range offers support.