Solana Faces Selling Pressure After FTX Fallout: $45M Locked Stake Raises Concerns

• Solana faces selling pressure following the collapse of FTX, with concerns about locked stake and a recent sell-off by a large investor.
• Alameda Research currently holds a locked stake worth $45 million in SOL, raising concerns for the altcoin.
• Price drops, lower volumes, and declining indicators raise uncertainty for Solana.

Solana Facing Selling Pressure After FTX Collapse

Solana faced significant selling pressure following the collapse of FTX. This was largely attributed to Alameda Research, an entity affiliated with FTX, which held a substantial quantity of SOL tokens. Initial indications suggested that Solana recovered from the aftermath of FTX’s downfall, however new data suggests that this may not be the case for SOL.

Alameda Research Locked Stake Raises Concerns

According to findings from Delphi Digital, Alameda Research currently holds a locked stake of 8.2% in the Solana cryptocurrency supply – amounting to 45 million SOL valued at $45 million – and is currently undergoing bankruptcy proceedings. The staked SOL could be unlocked by mid-2025 which raises concerns about potential impact on the supply and liquidity of SOL in the coming years creating FUD around SOL.

Large Whale Selling Significant Portion Of Holdings

In addition to this concern, Delphi Digital reported that a large whale was observed selling a significant portion of its holdings. The whale could be an early investor in Solana executing time-weighted average price (TWAP) orders over past few months – slowly trading to achieve an average price aligned with market conditions minimizing market impact and price volatility. The whale sold approximately 7 million SOL tokens leaving 10 million remaining adding to the downward price trend already caused by other factors such as lower volumes and declining indicators.

Price Drops & Lower Volumes Indicate Weakness In Market For Solana

At press time, Solana was trading at $13.20 representing a decline of 44.70% since testing resistance level on 30 April 2021 indicating lack of positive momentum and potential weakness in market for Solana.. The Chaikin Money Flow (CMF) indicator measuring buying/selling pressure also experienced negative readings during this period adding further weight to this notion

Conclusion

Overall it appears that there is still some selling pressure on Solana following its recovery from FTX collapse due to concerns over large locked stakes held by Alameda research as well as recent sell off activity by whales diminishing liquidity levels for altcoin