As SOL staking addresses associated with FTX/Alameda redeemed 178,631 SOL, worth approximately $28 million, the price of Solana may face further downward pressure.

If a significant portion of redeemed SOL is sold on exchanges, altcoins could see a double-digit drop in value. The question is: how soon will this happen?

FTX Takes Action, Solana at Risk

Earlier on Tuesday, FTX/Alameda’s SOL staking address redeemed another 178,631 SOL coins, worth more than $128 million at current market prices.

This is the latest in a series of regular SOL redemptions and transfers from the address, with around 170,000 SOL being redeemed and transferred out around the 12th to 15th of each month, according to Solscan.

Recently redeemed SOL tokens could flow into exchanges like Coinbase or Binance for sale, especially after a Delaware judge approved FTX’s reorganization plan, which distributed more than $14 billion in compensation to customers of the defunct cryptocurrency exchange. If this happens, it could cause SOL’s price to temporarily fall in the short term.

However, traders can take comfort as SOL is currently benefiting from the overall market uptrend. As of this writing, the altcoin is trading at $154.56, with an 8% price increase over the past week. It has a bullish bias, as evidenced by its Parabolic Stop and Reverse (SAR) indicator.

The indicator identifies an asset’s trend direction and potential reversal points. At press time, its dot was above the Solana price, suggesting that the altcoin is in an uptrend. Traders interpret this as a signal to hold or open long positions.

This bullish outlook is supported by SOL’s relative strength index (RSI). The coin’s RSI, which measures oversold and overbought market conditions, is 59.51, indicating that Solana is gaining strength and experiencing a bullish trend.

SOL Price Prediction: Everything is now under the control of FTX

Solana’s current share price of $155.18 is below the resistance level of $159.77. If the bullish momentum continues, the price could break above this level with a target of $186.29, which is the highest price since July.

However, once FTX starts liquidating its redeemed tokens without sufficient demand to offset the increased supply, Solana could lose its recent gains. A 15% drop could push its price down to the $131.04 support level.

If this support fails to hold, the Solana price could decline further to $109.55.