Solana Price Plummets, What’s the Cause? Solana Price Technical Outlook & Market Sentiment March 2025
Jakarta, Pintu News – The price of Solana recently experienced a sharp drop below the $125 support level, raising concerns among investors and market watchers. This drop comes amid large transactions involving wallets associated with FTX and Alameda Research.
FTX and Alameda Research Deals as Triggers for Price Decline
On March 13, the price of Solana (SOL) experienced a significant price drop, falling by 5% in a day. This drop came after a large transfer of Solana (SOL) tokens from Alameda Research. According to Arkham Intelligence, Alameda had relinquished a stake of over $23 million worth of SOL, distributing it to 38 different addresses.
This action follows previous signs of selling from FTX-related wallets, raising concerns about future asset price pressure. Since November 2023, FTX and its trading arm, Alameda Research, have un-staked around 8 million Solana tokens (SOL), which are worth nearly $1 billion. Many of these tokens have been sold through major exchanges such as Coinbase and Binance, contributing to the downward trend in Solana (SOL) prices.
Potential Continued SOL Price Weakness
Currently, the Solana (SOL) price is still under the influence of the ongoing FTX liquidation process. Market participants are concerned about the 5.5 million SOL tokens, currently valued at around $693 million, which are still under the control of FTX and Alameda. These assets are still ripe for de-staking or sale, which continues to increase the risk of downward pressure on the Solana (SOL) price.
Solana Price Technical Outlook and Market Sentiment
From a technical perspective, Solana (SOL) price action remains under pressure. After briefly reclaiming the $131 mark, SOL price faced a quick reversal as bearish sentiment took over. Solana (SOL) price has since dropped below the $125 support, which is now seen as a critical level for future price action.
Conclusion
This sharp drop in the price of Solana (SOL) is a warning to investors about the volatility that can occur in the crypto market. It also highlights the importance of understanding the dynamics behind the crypto assets one is investing in, including external factors such as large transactions that can significantly affect prices.
Also Read: Pi Network Price Predictions to 2050: What to Expect?
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*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.
Reference
- Coingape. Why Solana Price is Falling Suddenly. Accessed on March 14, 2025
- Featured Image: Decrypt
