The question explores whether Solana's $170 backing will persist following Alameda's withdrawal of $35 million in SOL tokens.
In the cryptocurrency market, Solana (SOL) is experiencing significant selling pressure from large whale investors. This trend, which has been observed around August 2021, has seen whales transferring and selling substantial SOL amounts, contributing to downward price pressure near the $177–$180 range.
According to data sourced from Arkham, Alameda Research wallet unstaked $35 million in SOL, representing a 100x gain since it was locked in late 2020. This unstaking occurred at a time when Solana's weekly pullback was 2.35%. One notable whale's stash dropped 71% in under two days, from $24 million down to $6.8 million.
The selling pressure is causing concern, as Solana's current price consolidation above $170 is a notable divergence from previous risk-off periods, where net position flipped negative and capitulation set in. The $170 line is a critical inflection point for Solana, as selling pressure is building and buy-side depth hasn't collapsed yet.
The driving factors behind this selling pressure include profit-taking and portfolio rebalancing by whales as SOL encounters resistance near $185–$190, a zone that repeatedly rejects breakouts. Another factor is the emergence of alternative investment opportunities, such as early-stage presale projects, which may be drawing capital away from SOL. On-chain demand weakening, indicated by a 16% drop in daily active addresses and an 8% pullback in DeFi total value locked, suggests reduced network engagement.
Large holders unstaking and moving significant SOL amounts to exchanges also play a role in this selling pressure. For instance, nearly 100,000 SOL worth $18 million were recently transferred.
The potential impact on the critical $170 support level is crucial. Analysts identify a support range approximately between $169 and $176 as pivotal to maintaining Solana’s broader bullish outlook. A sustained breakdown below this zone could trigger deeper price corrections and increased volatility. It could also undermine the bullish accumulation narrative and invalidate breakout patterns above $200 or higher targets around $240–$260. Furthermore, it could lead to increased selling pressure as stop-loss orders and panic selling could cascade.
Conversely, if Solana can maintain support above this range with accompanying volume increases, it may absorb selling pressure from whales and set up for a renewed attempt at breaking above $200 resistance levels.
Historical trends suggest that once SOL breaks resistance, it often faces swift capitulation. On the quarterly charts, Ethereum [ETH] has delivered a massive 72% ROI compared to SOL's 12.8%. The sync between large whale sell-offs and unstaking activity suggests coordinated distribution in the Solana market. Despite the unstaking, Solana's net position remains positive, supporting price consolidation above $170.
In August so far, Solana [SOL] has inched up only 1.07%, while Ethereum [ETH] has gained 15.75%. If $170 doesn't hold as support, increased downside risk for Solana is expected.
This news article is sourced from Arkham. It's essential to keep a close eye on these developments to make informed decisions in the cryptocurrency market.
- Large whale investors are responsible for the selling pressure on Solana (SOL), leading to a transfer and sale of substantial SOL amounts, causing downward price pressure.
- According to data from Arkham, Alameda Research wallet unstaked $35 million in SOL, representing a significant gain since it was locked in late 2020.
- Solana's current price consolidation above $170 is a notable divergence from previous risk-off periods, but the $170 line is a critical inflection point for Solana, as selling pressure is building and buy-side depth hasn't collapsed yet.
- One notable whale's stash dropped 71% in under two days, from $24 million down to $6.8 million.
- Large holders unstaking and moving significant SOL amounts to exchanges also contribute to the selling pressure in the Solana market, with nearly 100,000 SOL worth $18 million recently transferred.
- Although Solana's net position remains positive, supporting price consolidation above $170, if this level doesn't hold as support, increased downside risk for Solana is expected, especially in comparison to Ethereum's performance in August, which has gained 15.75%.
