Solana Market Stability at Risk as 23M SOL Withdrawn— Will SOL Price Drop Further?

A recent withdrawal of 23 million SOL from an Alameda Research address has sparked concerns over Solana market stability. The withdrawn tokens were distributed across 37 wallets, raising fears of selling pressure and potential price declines. Additionally, technical indicators show signs of a bearish trend, adding to investor uncertainty.

Repeated Market Pressure: 1st March’s 2B SOL Withdrawal & Latest 23M SOL Move

Solana has faced significant withdrawals from major holders, raising concerns about market liquidity pressure. On 1 March, a staggering SOL withdrawal—worth approximately $2.2 billion—triggered a sharp price drop, reinforcing fears of Solana market stability being at risk. 

Five large holders recently redeemed 5.52 million SOL, valued at $810 million, with $516 million directly offloaded on Coinbase Prime. This pattern of large-scale liquidations following price rebounds suggests that institutional players may continue to apply selling pressure, potentially leading to further price declines. 

Massive Solana (SOL) Withdrawal Raises Concerns Over Market Stability https://t.co/gK4Nsf4rie via @SolanaDailyN #Solana #Crypto #Blockchain

— Solana News (@SolanaDailyN) March 13, 2025

Today, as of March 13th, Solana’s official news on X (formerly Twitter) posted the above tweet that quickly gained traction, with market experts debating whether another wave of selling pressure could emerge. Many fear this latest withdrawal could follow the March trend, leading to increased volatility and a potential price correction. 

Will SOL Price Fall Below Key Support?

Experts are concerned that Solana’s price chart has flashed a “death cross” alert for the third time. This occurs when the 50-day moving average drops below the 200-day moving average and usually results in steep price falls. The last occurrence of this signal in 2022 resulted in a 60% down in the value of SOL.

Chart 1 – SOL/USD Live Price, published on TradingView, March 13, 2025.

Solana currently, as of 13th March, trades at $126.50, down 1.64%. The crypto price analysis indicates that if the price drops below $119.83, then further downward pressure may be experienced. Alternatively, breaking above $135.52 may enable recovery. Traders should monitor technical trading patterns to prepare for possible market action.

SOL Price Prediction: Caution Advised as Volatility Looms!

An increase in SOL transfers to exchanges further fuels concerns about Solana market stability. Historically, large inflows to exchanges signal that holders may be preparing to sell, potentially leading to market liquidity pressure and a drop in SOL’s price.

The crypto price chart illustrates 2 out of 17 technical indicators pointing towards buying and 12 pointing towards selling pressure on it. The 14-day RSI stands at 45.94, which means that Solana is not oversold or overbought. These conditions point towards a possible downward momentum if selling pressure continues.

Furthermore, historical data indicates that Solana’s performance has been poor. In the past five years, SOL’s price closed lower three out of five times. According to analysts, based on past trends and technical trading patterns, Solana might test the $100 level if bearish sentiment continues.

Solana’s Uncertain Road Ahead: Caution or Opportunity?

In spite of the setbacks due to withdrawal pressures and bearish indicators, the long-term future of Solana market stability remains intact. Increasing developer communities and upcoming blockchain upgrades for the network may be the catalysts for future expansion. 

In the short term, however, liquidity pressures in the market and increasing exchange inflows point to rising volatility. Technical trading trends consolidating and institutional involvement in continuation would see SOL return to bullish mode. Meanwhile, investors need to be cautious, closely monitoring crypto price analysis as well as the principal resistance levels to advance in the market.

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