Solana (SOL) Price Could Take a Major Hit as Alameda Address Unstakes 177,000 SOL

Solana price could take a major hit after an Alameda address unstaked $23 million SOL in what appears to be an indicator for a potential selloff.

Alameda Research has been busy unstaking and distributing large amounts of crypto in recent times as part of what appears to be a broader selloff strategy.

According to a new post by Arkham, an Alameda Research-associated address has unstaked 177,000 SOL (approximately $23 million) and distributed the funds to several addresses.

The post adds that the Alameda staking address received 177,132 SOL (about $22.9 million) from a staking address unlock.

Upon receipt of the tokens, the funds were distributed to 37 addresses. Of these addresses, 32 are identified by Arkham as being affiliated with FTX, while another five are linked to Alameda.

Together, the 37 recipient addresses are estimated to hold a total of 1,378,636 SOL (around $178.82 million).

This unstaking activity comes amid reports of Alameda preparing for a major selloff of its crypto holdings.

Earlier this month, reports emerged that Alameda, the trading house behind bankrupt crypto exchange FTX, is planning to sell a "huge portion" of its remaining crypto holdings. The report, which was first made by CoinDesk, added that Alameda’s crypto holdings are valued at several billion dollars.

Earlier this year, on March 2, Blockware analyst Ben Armstrong pointed out that Solana whales unstaked nearly $1 billion SOL as prices tumbled to multiple-month lows.

As reported by AZCoin News, at the start of March, crypto analytics firm Glass Node reported that a large amount of SOL was unstaked on March 1.

According to Glass Node’s data, a total of 79,646 SOL (approximately $766,000) were unstaked within a 24-hour period. Moreover, an even larger sum of 177,132 SOL (about $1,706,000) were unlocked from staking.

After FTX’s bankruptcy, rumors have spread that Alameda, a major shareholder of FTX and a trading house known for its large-scale operations, is preparing to sell off a significant portion of its crypto holdings.

Alameda’s strategy is said to focus on minimizing the price impact of the selloffs. To achieve this, they are planning to gradually sell small amounts of crypto over an extended period.

Alameda’s liquid tokens are currently estimated to be worth around $3 billion to $5 billion. Considering the vast scale of the selloff, even a slight movement in prices could have a substantial impact on the market.

As such, any activity related to Alameda or FTX is closely monitored by crypto traders, who are anticipating the potential selloff that could follow.

Solana could be seen trading in the red on Wednesday, with technical analysis suggesting that the 50-day moving average (MA) is approaching the 200-day MA.

A crossover of this kind, also known as a ‘death cross,’ could be the third of its kind for Solana in its history.

Solana price could take a major hit after an Alameda address unstaked 177,132 SOL (approximately $23 million). The crypto behemoth is known for distributing any unlocked tokens to its main addresses.

According to Arkham’s post, on March 1, an Alameda Research-associated address received 177,132 SOL (about $22.9 million) from a staking address unlock.

Upon receipt of the tokens, the funds were distributed to 37 addresses. Of these addresses, 32 are identified by Arkham as being affiliated with FTX, while another five are recognized as Alameda.

Together, the 37 recipient addresses are estimated to hold a total of 1,378,636 SOL (around $178.82 million).

Typically, unstaking large amounts of SOL triggers selling pressure for Solana price. In the event of a sale, excess SOL floods the market and if demands fall to match supply, prices take a massive hit.

A move to exchanges will confirm speculation of a selloff with similar moves historically triggering corrections for Solana price.

Earlier this year, on March 2, Blockware analyst Ben Armstrong pointed out that Solana whales unstaked nearly $1 billion SOL as prices tumbled to multiple-month lows.

As reported by AZCoin News, at the start of March, crypto analytics firm Glass Node reported that a large amount of SOL was unstaked on March 1.

According to Glass Node’s data, a total of 79,646 SOL (approximately $766,000) were unstaked within a 24-hour period. Moreover, an even larger sum of 177,132 SOL (