- An FTX/Alameda strike address has unstaked $28 million in Solana, which will likely be deposited on exchanges.
- However, despite this potential selling, SOL bulls are defying bearish sentiment with a $172 price target.
Solana [SOL] has recovered alongside the broader cryptocurrency market. After Bitcoin [BTC] bounced to levels above $66K, SOL, like many altcoins, followed suit and hit weekly highs.
Solana was trading at $154 at the time of writing, having gained 1.47% in 24 hours. According to the figures, trading volume on the spot market also increased by approximately 45% during this period CoinMarketCap.
These gains have turned the sentiment of the crowd and smart money around Solana to bullish.
Source: Markt Profhit
The positive story comes despite concerns about a potential multimillion-dollar sale of Solana by defunct crypto firms FTX and Alameda Research.
FTX Unlocks Solana Worth $28 Million
Data from Solscan showed that on October 15, a staking address associated with FTX and Alameda unlocked 178,631 SOL, worth approximately $28 million at the current Solana price.
According to on-chain researcher EmberCNthese tokens will likely be sent to exchanges. This staking address will redeem approximately 170,000 SOL between the 12th and 15th of each month, which will later be sent to Binance or Coinbase.
If the recently unstaked tokens are sold, it will likely increase selling pressure on Solana. However, a look at the one-day chart shows that bulls are taking control and overpowering bearish sentiment.
Solana price analysis
Solana has formed a bullish crossover after the 20-day Exponential Moving Average (EMA) crossed above the 100-day EMA.
This crossover suggests that market sentiment is shifting in favor of buyers, which could lead to further upside momentum.
An increase in buying pressure can also be seen on the Moving Average Convergence Divergence (MACD) histogram bars which have turned green. Moreover, the MACD line has turned positive and shifted above the signal line.
Source: TradingView
A continuation of this bullish trend could see the SOL move towards the next resistance level at $172.
A drop to the $149 support level could create a new buying opportunity for SOL if the broader market continues to gain and sentiment around SOL remains positive.
Solana’s recent gains were likely due to a rise in financing rates to a seven-day high as short positions came under pressure.
On October 14, $9 million worth of Solana shorts were liquidated, marking the highest number of short liquidations since early August.
These liquidations forced short sellers to become buyers and close their positions.
Source: Coinglass
Read Solana’s [SOL] Price forecast 2024, 2025
In addition to the buying pressure from short traders, the growth of Solana-based meme coins is also driving profits.
According to Coin geckothe market cap of Solana memecoins has risen 17% to $11 billion over the past seven days.