- At the time of writing, SOL appears to be bullish, on the verge of breaking out of a significant level.
- If SOL closes the daily candle above $138.2, it could see a price surge of more than 33%, reaching the $185 level.
Amid the recent bear market, major cryptocurrencies have shown signs of recovery after their price plunges in recent days.
Meanwhile, on September 12, the wallet address “H4yiPh” associated with the bankrupt FTX/Alameda unstaked 177,693 Solana (SOL) tokens, worth $23.75 million.
FTX/Alameda Wallet, SOL Staking Unlocked
According to Lookonchain, the company has withdrawn a significant amount of tokens from Solana’s proof-of-stake (PoS) system, which will likely be transferred to a centralized exchange in the future.
In the cryptocurrency community, unstaking is often seen as a sign of bearish sentiment.
Most investors or institutions unstake their tokens because they believe a price decline is in progress or because they are preparing to sell their tokens. This creates enormous selling pressure and leads to a significant price decline.
Current price trend
As of the time of writing, Solana has not seen any price impact due to the recent unstaking. At the time of writing, SOL is trading at $134.75 after a price surge of over 2.15% in the last 24 hours.
Trading volumes increased by 10% over the same period, showing increased participation from traders despite market uncertainty.
SOL is looking bullish on the price chart despite trading below the 200 Exponential Moving Average (EMA) on the daily timeframe.
Additionally, the token is trying to break above the critical level of $138.2. If SOL breaks this level and closes the daily candle above it, the token could experience a massive price surge of over 33% to $185.
Source: TradingView
However, if the wallets connected to FTX/Alameda move their major tokens to a centralized exchange (CEX), the bullish theory may not hold on the SOL daily chart.
SOL’s bullish on-chain data
Solana’s bullish outlook is further supported by on-chain data, notably Coinglass’ long/short ratio, which at the time of writing was 1.07, the highest it has been since early August 2024.
Additionally, 51.7% of the top traders held long positions, while 48.3% held short positions.
Source: Coinglass
Meanwhile, open interest in SOL futures increased by 4%, indicating that traders are feeling bullish and potentially building larger long positions.
According to Coinglass data, the current major liquidation levels are at $133.50 as the lower limit and $136.95 as the upper limit, as traders are holding excessive leverage at these levels.
Source: Coinglass
Read Solana (SOL) price prediction for 2024-2025
If market sentiment remains bullish and the SOL price rises to the $136.95 level, short positions worth approximately $22.03 million will be liquidated.
Conversely, if sentiment changes and the price falls to the $133.5 million level, long positions worth approximately $31.23 million will be liquidated.