Solana (SOL) is once again in the spotlight, but not for the reasons investors would hope. On May 16, the SOL price dropped 4%, falling to $169—its first dip below the $170 support level this month. The trigger? Bankrupt crypto exchange FTX announced it will begin distributing $5 billion in digital assets to creditors starting May 30. While the move aims to resolve creditor claims, it’s reigniting fears of massive token liquidations and renewed selling pressure on Solana.
According to FTX’s estate, the $5 billion payout will be processed through digital asset custodians BitGo and Kraken, with claimants expected to receive funds within 1–3 business days. Although good news for former users hoping to recover losses, it’s raising red flags for SOL holders due to the significant volume of unstaked tokens tied to the exchange.
$236M in Solana Unstaked—A Sign of What’s to Come?
Blockchain data from StakingRewards reveals over 1.4 million SOL has been unstaked over the past week—a staggering $236 million at current prices. While unstaking doesn’t necessarily mean immediate selling, in this case, it strongly points to liquidation preparation. FTX has been steadily offloading assets as part of its bankruptcy proceedings, and SOL has always been one of its largest holdings.
The timing couldn’t be worse for Solana bulls. This week’s sell-off wasn’t isolated to SOL—Layer-1 tokens broadly faced downward pressure. Ethereum fell by 2.7%, while both Cardano and XRP lost around 4%. The synchronized drop suggests that investors are rotating out of altcoins ahead of what could be a volatile period sparked by FTX’s large-scale asset release.
Can Bitcoin Strength and ETF Optimism Cushion Solana’s Fall?
Despite Solana’s price turbulence, Bitcoin has managed to maintain a stable footing, trading above $100,000 for the seventh day in a row. BTC’s consistency could serve as a stabilizing anchor, particularly if risk appetite returns across the broader crypto market.
Further aiding sentiment is growing speculation around altcoin ETFs. According to prediction market data from PolyMarkets, the probability of the SEC approving such ETFs by June 16 has surged to 82%. If approval comes through, Solana is expected to be among the key beneficiaries, potentially offering a bullish catalyst to counteract the FTX-triggered sell-off.
Solana Price Outlook: Technicals Signal Caution
From a technical perspective, things aren’t looking rosy for SOL. After suffering a 9.67% intraday decline on May 15, Solana managed only a tepid 1.34% rebound to $171.42. The price remains trapped below its Volume Weighted Average Price (VWAP) and the mid-point of the Keltner Channel—a sign of persistent weakness.
Volume analysis adds to the concern, showing that recent sell-side pressure is outpacing buying activity. This suggests that traders are distributing rather than accumulating SOL at current levels.
For now, the immediate support sits around $170.53. If that breaks, the next logical downside targets fall in the $161 to $150 range, with $145 emerging as a possible worst-case scenario if market sentiment further erodes.
To flip the narrative, bulls will need to reclaim the $175 level with conviction—meaning not just price movement, but also a noticeable uptick in trading volume. Without that, Solana risks remaining under pressure, especially with looming FTX-related sell-offs.
Final Thoughts
Solana’s recent dip is more than just a market blip—it reflects a convergence of internal and external forces that could continue to weigh on price. Between FTX’s asset liquidation, weak altcoin sentiment, and shaky technical indicators, SOL is walking a tightrope. Yet, with ETF optimism and Bitcoin’s resilience in play, a turnaround isn’t off the table—if the market can absorb the short-term shock.
For now, all eyes are on May 30, when FTX’s $5 billion payout could either mark the end of a painful chapter or open the floodgates to even more volatility. Investors would be wise to tread carefully.
