Key Takeaways
- Defunct firms FTX and Alameda unstaked 189,851 SOL worth $30.94 million, triggering fears of a potential sell-off. And yet, Coinglass data revealed that bulls may be in control now, with $182.72 million in long positions and $80 million in shorts.
With three consecutive green candles, Solana (SOL) turned bullish on the price charts. In fact, at the time of writing, it seemed like it might be poised for a massive upside rally soon. However, a recent report shared by blockchain-based transaction tracker Lookonchain has raised some concerns about a potential price dip in the coming days.
FTX, Alameda unstake $31M of SOL
On 11 July, Lookonchain shared a post on X (formerly Twitter), revealing that the defunct crypto exchange FTX and bankrupt trading firm Alameda had unstaked 189,851 SOL worth $30.94 million. The last time they unstaked SOL, it was for the repayment of $1.2 billion to former users of these platforms who lost their funds during the collapse.
A substantial unstaking might often be a red flag for SOL holders. Especially since it has the potential to slow down the asset’s upside or even cause a price drop. In the present case, the amount is not that large. So, there may be a lower likelihood that it will significantly affect SOL’s price.
And yet, the impact of this unstaking had started to show on SOL’s price. Especially as it appeared to be struggling to maintain its upside at press time.
At the time of writing, SOL was trading near $163, with 24-hour gains of over 3.5%. However, the surge was previously around 5.5%, with the price hovering above $166. It can be argued that FTX and Alameda might be responsible for this modest price drop.
That’s not all though. During the same period, investors and traders have expressed strong interest in the crypto, leading to a 55% jump in the trading volume.
Solana (SOL) technical analysis and key levels
According to AMBCrypto’s technical analysis, SOL seemed bullish at press time, having recently broken out of multiple bullish patterns.
On the daily timeframe, the asset first broke out of a prolonged descending channel pattern, followed by a consolidation zone. Most recently, with a 12% price rally, SOL also broke out of a bullish inverted head and shoulders pattern, as well as the 200-day Exponential Moving Average (EMA).
Source: TradingView
These multiple bullish breakouts could be a sign of Solana’s strong upside potential. Based on its recent price action and historical patterns, if SOL holds above the neckline of the head and shoulders pattern, there may be a strong possibility the asset could hike by 15% and hit the $184-level.
On the other hand, there is also the possibility of a price correction due to the continuous upside momentum over the past four days.
At press time, Solana’s Relative Strength Index (RSI) stood at 63, still trading below the overbought territory – A sign that the asset may have enough room to continue its northbound trajectory.
Traders’ eyes are on long positions
Given the prevailing market sentiment, it would seem that traders are strongly betting on the bullish side.
According to Coinglass, for instance, traders appeared to be over-leveraged at $161.4 on the lower side (where they have been heavily betting) and at $167.4 on the upper side.
Source: Coinglass
At these levels, traders have built $182.72 million worth of long positions and $80 million worth of short positions. This can be interpreted to allude to bulls’ dominance, with the same likely to push SOL’s price to higher levels too.
