Solana Faces Downward Pressure as Alameda Unlocks Continue, Breaking Key Support Levels
Solana's native token, SOL, has experienced a significant price drop, falling below crucial support levels amid ongoing token unlocks from the bankrupt Alameda Research estate. Despite robust institutional demand seen in Solana-based ETFs, the increased supply from these unlocks has exerted downward pressure on the cryptocurrency's value.
Key Takeaways
- Solana (SOL) has broken below key support levels, trading at approximately $152.80.
- Scheduled token unlocks from the Alameda Research estate are contributing to selling pressure.
- Despite the price decline, institutional investors continue to show strong interest through Solana ETFs.
Alameda Unlocks Fuel Selling Pressure
On November 11, a substantial amount of SOL tokens, estimated at 193,000 and valued at around $30 million, were released as part of Alameda Research's ongoing monthly vesting schedule. These structured releases, managed under bankruptcy oversight, are intended for creditor repayment and have been gradually distributing over 8 million tokens since November 2023. This systematic supply increase creates predictable selling pressure in the market.
Institutional Demand Remains Strong
In contrast to the selling pressure, Solana-based exchange-traded funds (ETFs) have seen consistent inflows, marking their tenth consecutive day of positive net assets. This week alone, these ETFs have attracted approximately $336 million. Major financial institutions have disclosed new holdings in Solana products, and Grayscale has introduced options trading for its Solana Trust ETF (GSOL) to offer enhanced hedging tools for institutional traders. This sustained institutional demand provides underlying support for SOL.
Technical Analysis and Market Sentiment
Technical analysis indicates that SOL has broken critical support at the $156 level, forming a descending channel. The 60-minute chart shows accelerating bearish momentum, with the price collapsing on elevated trading volume. While immediate targets suggest a potential bounce towards the $160-$165 resistance if the $152.80 demand zone holds, a breakdown below $150 could accelerate losses towards $145. The market is currently caught between the opposing forces of predictable selling from Alameda unlocks and consistent institutional accumulation.
Broader Market Context
The CoinDesk 5 Index (CD5) also experienced a decline, reflecting broader market volatility. While Solana's price action has been directly impacted by the Alameda unlocks, the overall crypto market is navigating various factors, including mixed institutional flows and macroeconomic signals. Despite SOL's recent struggles, the continued interest in Solana ETFs highlights a bifurcated market sentiment, with institutional investors actively accumulating at lower price points.