Solana (SOL) is showing signs of a potential breakout, with a bullish outlook on the price charts despite trading under the 200 Exponential Moving Average (EMA) on the daily time frame. If SOL closes a daily candle above $138.2, it could experience a significant price surge of over 33% to the $185 level.
However, a recent development has raised concerns among investors. On September 12, a bankrupt FTX/Alameda-linked wallet address “H4yiPh” unstaked a massive 177,693 Solana [SOL] tokens, worth $23.75 million. This move has sparked fears of a potential sell-off, as unstaking is often considered a bearish sentiment.
FTX/Alameda Wallet Unstakes SOL
According to Lookonchain, the company has withdrawn these tokens from Solana’s Proof of Stake (PoS) system, and there is a high possibility they will be transferred to centralized exchanges in the near future. The crypto community generally views unstaking as a bearish sentiment, as investors or institutions often unstake their tokens when they expect a price drop or are preparing to sell their tokens.
Despite this development, Solana’s price has not been affected, and it has even seen a 2.15% price surge in the last 24 hours. The token’s trading volume has also increased by 10% during the same period, indicating greater participation from traders despite uncertainty in the market.
Bullish On-Chain Data
Solana’s bullish outlook is further supported by on-chain data. Coinglass’s Long/Short ratio is currently 1.07, the highest since the beginning of August 2024. Additionally, 51.7% of top traders hold long positions, while 48.3% hold short positions.
SOL’s Futures Open Interest has also increased by 4%, showing that traders’ sentiments are bullish, and they are potentially building larger long positions. The significant liquidation levels are currently close to the $133.5 level on the lower side and $136.95 on the higher side, as traders are over-leveraged at these levels, according to Coinglass data.
If market sentiment remains bullish and SOL’s price rises to the $136.95 level, approximately $22.03 million worth of short positions will be liquidated. Conversely, if the sentiment shifts and the price drops to the $133.5 level, around $31.23 million worth of long positions will be liquidated.
In conclusion, Solana’s bullish outlook is supported by on-chain data and price charts, despite the recent FTX/Alameda-linked wallet unstake. If the token can break out of the $138.2 level and close a daily candle above it, it could experience a significant price surge of over 33% to the $185 level. However, the market sentiment and the movement of the FTX/Alameda-linked wallet will be crucial in determining the token’s future price action.
Disclaimer
Readers are encouraged to conduct their own research and consult with a financial professional before making any investment decisions based on this content.
