Solana Price Analysis – Will SOL Drop Further as Alameda Research Unstakes 23M SOL?

Highlights: 

• Solana’s price slightly recovers $0.30% despite decreasing trading volume. 
• The recent withdrawal of 23M SOL from Alameda Research sparks concerns over the Solana market’s volatility.
• Solana price struggles below moving averages as bears take the reigns. 

Solana’s price has shown a slight 0.30% increase, indicating minimal recovery. Its trading volume is still roaming in the red zone, down 26% to $3.21 billion, indicating dwindling market activity. Meanwhile, the recent plunge comes as a withdrawal of 23 million SOL from an Alameda Research address has sparked concerns over Solana’s market stability. The withdrawn tokens were distributed across 38 wallets, raising fears of selling pressure and potential price declines.

NEW: An FTX/Alameda address has recently unstaked $23M in SOL and distributed it to 38 addresses.

These addresses now hold over 178M in $SOL. pic.twitter.com/YB6q45woB8

— SolanaFloor (@SolanaFloor) March 13, 2025

Substantial withdrawals from key holders in Solana created market liquidity concerns throughout the system. A withdrawal of $2.2 billion worth of SOL on March 1 resulted in a sudden price decrease, intensifying worries about Solana’s market stability. 

Massive Solana (SOL) Withdrawal Raises Concerns Over Market Stability https://t.co/gK4Nsf4rie via @SolanaDailyN #Solana #Crypto #Blockchain

— Solana News (@SolanaDailyN) March 13, 2025

Large investors redeemed 5.52 million SOL tokens worth $810 million by trading them through Coinbase Prime and disposing of $516 million there. Due to these investors’ new buying behavior, price surges on markets tend to trigger major institutional liquidations.

Solana Price Outlook

The SOL/USD daily chart shows the price is in a prolonged downtrend, trading within a well-defined descending channel. The market is currently priced at $125.99, showing a slight 0.30% increase, suggesting a minor recovery attempt. However, the price remains below the 50-day MA (181.14) and the 200-day MA (183.50), indicating that bearish pressure is still dominant. 

The current support level sits at $118, which is a psychological floor for buyers. If selling pressure continues, we could see a further decline towards this support level, leading to another round of bearish movement.

Looking at the daily chart, the Solana price is heading toward the south. However, for the market to reverse its bearish trajectory, bulls must push the price above the 50-day MA, which could signal the beginning of a short-term upward correction. The first significant resistance lies at $153, which aligns with the upper boundary of the descending channel. 

Can SOL Bulls Reclaim the $183 Mark Soon?

A successful breakout above this level would invalidate the bearish setup and trigger a bullish recovery toward the resistance levels of $181 and $183. Otherwise, the price may continue consolidating within the channel before making a decisive move.

On the upside, for Solana’s price to regain bullish momentum, it must break above the 50-day and 200-day MAs with a strong bullish candlestick. If this happens, the next significant resistance level is around $209, $216, and $238, which aligns with the channel’s upper boundary. 

A confirmed breakout above this level could shift the trend into a bullish phase, attracting more buyers. However, as long as the price remains below these key resistance zones, the overall structure remains bearish, and traders should remain cautious of further downside movements.

A closer look at the RSI shows upholds a bearish outlook, as it has plunged below the 50-mean level. The RSI currently reads at 36.94, showing intense selling pressure. However, the bulls could ignite a buy-back strategy at this level, causing a rebound towards resistance levels. Meanwhile, considering the low trading volume, buyers must show increased strength for a sustainable reversal.