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.
A post on Arkham claims that an address linked with Alameda Research has unstaked $23 million SOL and distributed the cash to several different addresses.
A staking address unlock resulted in the Alameda staking address receiving $22.9 million SOL, according to data extracted from the blockchain.After the tokens arrived, FTX and Alameda connected 37 addresses to receive the funds.
The 37 recipient addresses collectively own a total of $178.82 million SOL, which has sparked concerns about a potential selloff. Generally speaking, the unstaking of significant quantities of SOL is what causes selling pressure on the price of Solana.
If there is a sale, there will be an abundance of SOL flooding the market, and if the demand falls to match the supply, then prices will take a significant hit.
A move to exchanges will corroborate the assumption that a selloff is occurring, and historically, similar moves have been responsible for causing corrections for the price of Solana.
When prices dropped to their lowest point in several months, Solana whales unwound roughly one billion dollars worth of SOL at the beginning of March. There are indications on the blockchain that suggest Solana is getting close to a death cross for the third time in its history.
Solana Price Marches Toward Death Cross
It is a bearish indication known as the death cross, which takes place when the 50-day moving average crosses below the 200-day moving average. Obtaining a death cross has the potential to bring the price of Solana to new lows, with prior occurrences proving to be exceedingly negative.
Due to the implosion of FTX, prices declined by more than 90 percent at the first death cross, which occurred in 2022. As a result of the second death cross in 2022, prices experienced a precipitous decline, but they eventually staged a recovery during the “Trump pump.”
Considering that SOL is currently trading at a level that is the lowest it has been in six months, analysts believe that it is highly improbable that the cryptocurrency will ever hit $200.
The price of Solana is currently selling at $126.53, which is a decrease of roughly 15% over the course of the previous week. Therefore, traders are proceeding with caution for now, with the most significant indicator being a significant decrease in the amount of daily trading.
Trading volume has decreased by 22.71% during the course of the past twenty-four hours, reaching a total of $4.1 billion. Experts believe that Solana will exceed Ethereum, although the stats are not encouraging. They cite the outstanding functions of the network.
