Despite Bitcoin (BTC), Ripple (XRP), and Cardano (ADA) surging over 3% in the past 24 hours, Solana (SOL) prices remained subdued below $130 on Tuesday. Investors grew cautious amid increasing April resistance and looming FTX sell-off concerns.
SOL Price Lags Behind Bitcoin-Led Market Recovery
While the broader crypto market rebounded, Solana's price struggled to break the $130 barrier. TradingView data shows SOL stagnating at $126 at press time, underperforming peers like BTC and XRP.
Key observations:
- Systemic assets like SOL lagging during market-wide rallies often indicate active bearish catalysts
- Weak MACD readings (-5.16 and -5.69) confirm downward momentum
- Critical SMAs (5-day, 8-day) dipping below 13-day SMA signals sustained selling pressure
👉 Why Solana's price action matters for altcoin traders
FTX Repayment Plan Threatens SOL With April Volatility
Recent developments surrounding bankrupt exchange FTX's repayment process explain SOL's underperformance:
- $800M On-Chain Holdings: Arkham Intelligence reveals FTX holds 61% of assets on Solana and 39% on Ethereum
- May 30 Deadline: Court-mandated dollar-denominated repayments begin, requiring liquidation of crypto holdings
- Liquidity Impact: Over $800M could exit Solana/Ethereum ecosystems, creating significant sell pressure
This impending sell-off:
- Introduces bearish pressure on SOL/ETH prices
- May cause underperformance vs other top altcoins in April
- Puts $120 support level at risk if market sentiment weakens
Solana Price Prediction: Bears Target $120 Reversal
Current technicals paint a concerning picture for SOL:
| Indicator | Value | Implication |
|---|---|---|
| Current Price | $125.55 | Below all key SMAs |
| 5-day SMA | $128.93 | Immediate resistance level |
| MACD | -5.16/-5.69 | Strong downward momentum |
| Key Support | $120.00 | Critical level for bulls to hold |
Bull Case: Reclaiming $128.93 SMA could shift sentiment
Bear Case: Failure to hold $125.23 may trigger steeper declines
FAQs: Solana's FTX Risk Explained
Q: How much SOL will FTX sell for repayments?
A: FTX holds ~$488M in Solana-based assets (61% of $800M total) slated for liquidation.
Q: When will FTX selling pressure peak?
A: Liquidation likely accelerates as May 30 repayment deadline approaches.
Q: Can SOL recover if it holds $120 support?
A: Yes, maintaining this psychological level could prevent deeper corrections.
👉 How to hedge against Solana's volatility
Market participants should monitor liquidation timelines and exchange inflows for early warning signs of increased selling pressure. The $120-$130 range will prove decisive for SOL's April trajectory.