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- SOL at the time of writing seemed bullish and was on the verge of breaking the crucial level.
- If SOL closes a daily candle above $138.2, it could experience a price increase of over 33% to the $185 level.
In the current bearish market sentiment, the major cryptocurrencies appeared to be recovering after a massive price drop in recent days.
In the midst of this, on September 12, the bankrupt FTX/Alameda linked wallet address “H4yiPh” posted a significant 177,693 Solana [SOL] tokens, worth $23.75 million.
FTX/Alameda wallet releases SOL
Per Look at chainthe company has pulled these substantial tokens from Solana’s Proof of Stake (PoS) system, and there’s a good chance they could be transferred to centralized exchanges in the future.
The crypto community often views non-staking as bearish sentiment.
Typically, investors or institutions withdraw their tokens because they think a price drop is coming, or because they are preparing to sell their tokens. This creates enormous selling pressure, resulting in significant price drops.
Current price momentum
At the time of writing, Solana had not seen any impact from the recent price pullback. At the time of writing, SOL was trading at $134.75, having risen more than 2.15% in the past 24 hours.
Trading volume increased by 10% over the same period, indicating greater trader participation despite market uncertainty.
Going forward, SOL looked bullish on the price charts despite trading below the 200 Exponential Moving Average (EMA) on the daily time frame.
Moreover, the token was on the verge of breaking the crucial USD 138.2 level. If SOL breaks this level and closes a daily candle above it, the token could experience a massive price increase of over 33% to the $185 level.
Source: TradingView
However, if the FTX/Alameda-linked wallet moves these notable tokens to centralized exchanges (CEXs), the bullish thesis may not hold on SOL’s daily chart.
SOL’s bullish on-chain data
Solana’s bullish outlook was further supported by data about the chain. Notably, Coinglass’ Long/Short ratio at the time of writing was 1.07, the highest since early August 2024.
Furthermore, 51.7% of top traders had long positions, while 48.3% had short positions.
Source: Coinglass
Meanwhile, SOL Futures Open Interest rose 4%, showing that traders’ sentiments were bullish and they were potentially building larger long positions.
Currently, key liquidation levels were around $133.5 at the low end and $136.95 at the high end, as traders at these levels are over-indebted, according to Coinglass data.
Source: Coinglass
Read Solana’s [SOL] Price forecast 2024–2025
If market sentiment remains bullish and SOL’s price rises to the $136.95 level, short positions worth nearly $22.03 million will be liquidated.
Conversely, if sentiment changes and the price falls to the $133.5 level, long positions worth approximately $31.23 million will be liquidated.
