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- SOL looked bullish at press time, poised to break above the crucial level.
- If SOL closes a daily candle above $138.2, it could see a price increase of over 33% to the $185 level.
Amid the current bearish market sentiment, major cryptocurrencies appear to be recovering after experiencing massive price declines in recent days.
Amidst this, on September 12, the failed FTX/Alameda-related wallet address “H4yiPh” unlocked a significant 177,693 Solana (SOL) tokens, worth $23.75 million.
FTX/Alameda wallet releases SOL
According to Lookonchain, the company has withdrawn these substantial tokens from Solana’s Proof of Stake (PoS) system, and there is a strong possibility that they will be transferred to centralized exchanges in the future.
The crypto community often views disengagement as bearish sentiment.
Most of the time, investors or institutions dump their tokens because they think a price drop is happening or are preparing to sell their tokens. This creates massive selling pressure, leading to significant price drops.
Current price dynamics
At press time, Solana had not seen any impact on its price from the recent divestment. At press time, SOL was trading at $134.75 after a price increase of over 2.15% in the last 24 hours.
Its trading volume increased by 10% during the same period, indicating increased participation by traders despite market uncertainty.
Moving further, SOL appeared 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 $138.2 level. If SOL breaks above this level and closes a daily candle above it, the token could see a massive price surge 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 the SOL daily chart.
Bullish data on SOL channel
Solana’s bullish outlook was further reinforced by on-chain data. Notably, Coinglass’ Long/Short ratio was 1.07 at press time, the highest it has been since early August 2024.
Additionally, 51.7% of top traders held long positions, while 48.3% held short positions.
Source: Coinglass
Meanwhile, SOL futures open interest increased by 4%, showing that traders’ sentiment was bullish and they were potentially building larger long positions.
Currently, the main liquidation levels are around $133.5 on the downside and $136.95 on the upside as traders are overleveraged at these levels, according to data from Coinglass.
Source: Coinglass
Read Solana (SOL) Price Prediction 2024-2025
If market sentiment remains bullish and SOL price reaches the $136.95 level, nearly $22.03 million of short positions will be liquidated.
Conversely, if sentiment changes and price falls to the $133.5 level, approximately $31.23 million of long positions will be liquidated.
