- On Tuesday, Solana’s price remained stuck below $130, while BTC, XRP, and ADA each recorded gains exceeding 3% in the past 24 hours.
- Following several transfers of assets to exchange wallets in March, the FTX estate is slated to commence significant repayments on May 30.
- Data reveals that 61% of FTX’s $800 million on-chain assets are held in Solana, with 39% in Ethereum.
On Tuesday, Solana’s price consolidated under $130, encountering growing challenges in April as investors express concerns over potential FTX sell-offs.
Solana (SOL) price remains subdued as BTC leads market recovery
Solana’s price was hovering under $130 on Tuesday, even as the broader market experienced a rally. While Bitcoin (BTC), Ripple (XRP), and Cardano (ADA) achieved gains of more than 3% in the last day, SOL trailed behind.
Solana price analysis | SOLUSD
Based on TradingView data, SOL was trading around $126 at the time of this report, staying stagnant below the $130 threshold.
When a key asset like Solana underperforms amid a market-wide rally, it often indicates the presence of internal bearish factors that are affecting investor confidence.
Solana faces April volatility risks as FTX prepares for major repayments on May 30
Recent news indicates that Solana’s underwhelming performance on Tuesday is linked to developments surrounding the FTX exchange’s ongoing repayment processes.
Having executed several transactions to move assets into exchange wallets during March, the FTX estate is scheduled to initiate significant repayments to creditors on May 30.
Current intelligence shows that 61% of FTX’s $800 million in on-chain assets are tied to Solana, while 39% are associated with Ethereum.
FTX On-chain Holdings as of April 1, 2025
Importantly, the court has mandated that repayments be made in USD rather than through cryptocurrency assets.
Consequently, it’s expected that on-chain holdings will need to be liquidated before any distributions take place.
This forthcoming liquidation could withdraw over $800 million in liquidity from both the Solana and Ethereum ecosystems, resulting in considerable selling pressure.
The anticipated liquidation event adds a bearish sentiment to Solana’s price movement for the upcoming weeks.
The potential for extensive forced selling could impact SOL and ETH negatively, leading them to lag behind other prominent altcoins throughout April.
Traders will be closely monitoring how Solana manages this period of increased volatility, especially as the market speculates whether the $120 support level can withstand pressure once the current rebound trend falters.
Solana price forecast: Bears eye a $120 reversal in April amid FTX concerns
Solana’s pricing continues to be on unstable ground, struggling to regain territory lost in a climate of broader market unease.
According to TradingView, SOL is trading at $125.55, unable to recover essential moving averages. The 5-day and 8-day simple moving averages (SMA) have crossed below the 13-day SMA, indicating bearish momentum.
A downward crossover of these short-term SMAs traditionally signals sustained selling pressure, making it challenging for buyers to reclaim the $130 mark.
Solana Price Forecast | SOLUSD
The MACD indicator further highlights the bearish sentiment, with the MACD line remaining below the signal line at -5.16 and -5.69, respectively, reinforcing downward momentum.
A weak histogram points to declining buying interest, obstructing a sustained recovery. Unless the momentum shifts, the outlook for Solana’s price skews bearish, with $120 emerging as the next significant support level.
For bulls, reclaiming $128.93, the nearest resistance indicated by the short-term moving averages, would be essential to change the current sentiment.
However, if it fails to maintain levels above $125.23, Solana could face more pronounced declines, especially with FTX-related liquidity concerns looming in May.