The recent 23 million SOL token withdrawal from Alameda Research's address has raised alarms among Solana investors, intensifying concerns over possible price declines.
Alameda Research's SOL Withdrawal and Distribution
The withdrawal of 23 million SOL through unstaking from an address associated with Alameda Research has drawn attention in the cryptocurrency market. On-chain data confirmed that the withdrawn funds were distributed across 37 wallets, collectively holding a total of 178.82 million SOL. Such large-scale distributions typically incite short-term selling pressure, leading to unease among investors.
Risk Signaled by Technical Indicators
A 'death cross' signal emerged for the third time in Solana’s price chart, showing the 50-day moving average dropping below the 200-day average. This technical indicator, first seen in 2022, led to a loss of over 60% in SOL’s value. The reactivation of this signal suggests that investors should proceed with caution.
Solana Market Prospects
The current price level of around $126.53, combined with a decrease in trading volume, heightens the perception of risk. Technical analysts predict that referencing the historical performance of the death cross signal, a possible decline could test the $100 level. Furthermore, the increase in SOL transfers to exchanges lays the groundwork for potential acceleration in selling activity.
Investors are on high alert due to ongoing pressure in the Solana market. The continued impact of large withdrawals and technical indicator uncertainty necessitates close monitoring in the coming months.
