Solana (SOL) Rises 3.5% Despite FTX Unstaking Concerns

On 11 July, blockchain-based transaction tracker Lookonchain revealed that the defunct crypto exchange FTX and bankrupt trading firm Alameda had unstaked 189,851 SOL worth $30.94 million. This action raised concerns among Solana (SOL) holders about a potential price dip, as substantial unstaking can slow down the asset’s upside or even cause a price drop. However, the amount unstaked was not large enough to significantly affect SOL’s price.

Despite the concerns, Solana (SOL) had turned bullish on the price charts with three consecutive green candles. At the time of writing, SOL was trading near $163, with 24-hour gains of over 3.5%. The surge was previously around 5.5%, with the price hovering above $166. It can be argued that FTX and Alameda might be responsible for this modest price drop. During the same period, investors and traders have expressed strong interest in the crypto, leading to a 55% jump in the trading volume.

According to technical analysis, SOL seemed bullish at press time, having recently broken out of multiple bullish patterns. On the daily timeframe, the asset first broke out of a prolonged descending channel pattern, followed by a consolidation zone. Most recently, with a 12% price rally, SOL also broke out of a bullish inverted head and shoulders pattern, as well as the 200-day Exponential Moving Average (EMA). These multiple bullish breakouts could be a sign of Solana’s strong upside potential. Based on its recent price action and historical patterns, if SOL holds above the neckline of the head and shoulders pattern, there may be a strong possibility the asset could hike by 15% and hit the $184-level.

On the other hand, there is also the possibility of a price correction due to the continuous upside momentum over the past four days. At press time, Solana’s Relative Strength Index (RSI) stood at 63, still trading below the overbought territory – A sign that the asset may have enough room to continue its northbound trajectory.

Given the prevailing market sentiment, it would seem that traders are strongly betting on the bullish side. According to Coinglass, traders appeared to be over-leveraged at $161.4 on the lower side (where they have been heavily betting) and at $167.4 on the upper side. At these levels, traders have built $182.72 million worth of long positions and $80 million worth of short positions. This can be interpreted to allude to bulls’ dominance, with the same likely to push SOL’s price to higher levels too.