The cryptocurrency market never fails to keep investors on their toes. Recently, FTX, a now-defunct cryptocurrency exchange, and its trading subsidiary, Alameda Research, made headlines by unstaking a significant amount of their Solana (SOL) holdings. This development has sparked curiosity about the potential impact on Solana’s price and on-chain activity.
Unstaking $28 Million in Solana: What Happened?
On-chain analytics platform Onchain Lens reported that FTX-controlled wallets unstaked a total of 195,669 SOL tokens valued at approximately $27.98 million. This transaction is part of a broader pattern by FTX, which has been unstaking Solana tokens monthly since November 2023. In total, FTX has unstaked over 8 million SOL, estimated to be worth close to $1 billion.
Despite this massive liquidation potential, the market has shown remarkable resilience so far. Out of this sizable amount, around 4.048 million SOL tokens, valued at roughly $620 million, remain unstaked but unsold. Historically, similar events have led to some sell-offs, but capital inflows seem to be absorbing the pressure at present, avoiding significant bearish market behavior.
Market Metrics: Total Value Locked and Trading Volume
To gauge Solana’s market health, the Total Value Locked (TVL) serves as a key indicator of investor confidence and network activity. Solana recorded a significant increase in TVL, climbing from $8.841 billion on January 11 to $9.028 billion with fresh deposits totaling $187 million, according to DeFiLlama.
Additionally, Solana’s average daily trading volume has remained stable at around $4.186 billion over the past three days. This behavior aligns with a broader bullish sentiment, signaling steady market participation despite increased supply entering the ecosystem.
Spot Market Trends and Technical Analysis
The spot market, however, presents a more cautious narrative. Analysis of netflows indicates that approximately $17.466 million worth of SOL has moved to centralized exchanges, likely signaling selling intentions among investors. Retail trading activity has remained subdued, with netflows tilting toward selling in recent weeks.
On the technical side, Solana’s chart displays a bullish structure, specifically forming a cup-and-handle pattern. A breakthrough beyond the resistance zone of $142.1 to $142.8 could trigger a price rally toward $169, echoing highs last seen in December. Momentum indicators like the Money Flow Index (MFI), which currently sits at 73.73, further cement this optimistic outlook. Strong capital inflows indicate that buyers are still actively defending higher price points, creating opportunities for potential market growth.
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Takeaway: A Mixed Sentiment Persists
While the market has shown notable strength in absorbing FTX’s unstaked Solana tokens, caution continues to dominate among retail traders. Investors and analysts should closely monitor capital inflows, trading volume, and technical patterns like the cup-and-handle for potential breakout opportunities. With mixed signals from on-chain metrics and the spot market, Solana remains a crypto asset to watch in the coming weeks.
