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- Solana (SOL) has staged a rally to $237 despite FTX and Alameda Research redeeming 192,000 SOL from staking.
- An analyst has predicted that the asset could retest the $295 high once the current momentum continues.
Solana (SOL) has extended its recent gains to 16% on the weekly chart, breaking above a crucial resistance level of $230 to trade at $237. This massive rally has flipped the market sentiment into bullish, increasing the monthly gains to 21%, 90-day gains to 63%, and the year-to-date gains to 22%.
According to our data, the SOL daily trading volume has also skyrocketed by 41%, confirming traders’ rising interest.
FTX Redeems Solana (SOL) From Staking
The current market situation defies expectations as the infamous exchange FTX and Alameda successfully redeemed 192,000 SOL ($44.1 million at that time) from staking. According to analytics provider EmberCN, FTX has since November 2023 redeemed 8.98 million SOL ($1.2 billion) at an average price of $134. Meanwhile, on-chain data shows the exchange still has 4.18 million SOL ($977 million) in staking.
Previous reports have indicated that FTX is scheduled to distribute the next batch of claims on September 30. So far, $6.2 billion has been repaid to customers in two batches. An amount of $1.2 billion was distributed in February, and $5 billion was paid in May, as indicated in our earlier publication.
In general, between $14.7 billion and $16.5 billion is expected to be distributed. However, the situation in the market today proves that none of these could significantly lead to a major crash in the price of SOL.
Solana’s latest movement was earlier predicted by an analyst known as Mihai Lacob. According to him, $175 has been a strong support area where the asset has bottomed in two separate retracements. He also explained that there seems to be a lot of demand around that level, highlighting the potential to bounce off to a new height once the area decisively holds.
How Far Could SOL Rise?
For analyst Altcoin Gordon, any prediction that positions SOL’s target price below $1000 is a conservative one. To him, SOL’s rally above $219 is not a simple movement. This position has been in place for seven months; henceforth, stronger catalysts, including on-chain demands from whales and the growing Decentralized Finance (DeFi) ecosystem, have played a key role. When this continues, the price could certainly hit above $1000, according to Gordon.
Gordon’s prediction falls in line with that of analyst Crypto Curb. As noted in our earlier discussion, Crypto Curb expects the price to breach the $1000 level and continue to peak at $2000.
Looking into Solana’s on-chain activities, we discovered that confidence is steadily rising with two whales withdrawing a total of 376,076 SOL ($80 million) from Binance.
In the short term, Gordon expects this rally to continue, expecting a retest at the $295 all-time high since it has broken out of an ascending triangle on the daily chart. As highlighted in our recent coverage, SOL is poised to hit $400 from this level.
