Solana (SOL) fell by 4%, slipping below the $170 mark, following confirmation from bankrupt exchange FTX that it will soon begin distributing $5 billion to creditors. The news sparked SOL withdrawals worth over $236 million, raising fresh concerns over selling pressure.
💸 FTX Repayments Spark Decline in Solana
On Thursday, May 16, SOL dropped to $169, breaking through key support at $170 for the first time in May. The drop came shortly after FTX’s estate announced that it would begin its second round of payouts on May 30, distributing $5 billion in digital assets via BitGo and Kraken, with settlement expected within 1–3 business days.
⚠ SOL Withdrawals Increase as Market Pressure Builds
This decline coincides with a broader shift among Layer-1 tokens. According to StakingRewards, more than 1.4 million SOL have been unstaked over the past week — a move likely tied to assets still controlled by FTX.
At the current price of $169, that unstaked volume represents over $236 million in potential sell pressure. Combined with drops in Ethereum, XRP, and Cardano, this signals a broader market retreat.
📊 Can Bitcoin Stability and ETF Optimism Support Solana?
Despite SOL's drop, Bitcoin has remained above $100,000 for seven consecutive days — providing some market stability. Historically, BTC resilience often cushions sentiment around large-cap altcoins like Solana.
Meanwhile, PolyMarkets data currently shows an 82% probability that the SEC will approve altcoin ETFs by mid-June. This could prompt strategic buying of SOL ahead of potential approval.
🔮 Outlook: Crucial Weeks Ahead for SOL
The recent decline in SOL reflects both internal pressure from FTX liquidations and a wider market reshuffle. Bulls will need to regain the $170 level and stay above $150 to maintain momentum.
Without renewed demand or bullish catalysts, Solana remains vulnerable, especially if large wallet holders begin to sell.
📉 Technical View: Support Weakens, Correction Risk Increases
Charts show SOL suffered a 9.67% intraday drop on May 15, and although it rebounded slightly to $171.42, bullish conviction remains weak. Price closed just above VWAP at $170.53, but the overall market structure is fragile.
SOL is currently trading in the lower half of the Keltner Channel, and failing to break resistance at $181 adds doubt to bullish momentum.
With volume delta trends favoring sellers, recent red candles outweigh buying activity — pointing toward distribution rather than accumulation.
📌 Conclusion: Watch $170 — Break Below Could Trigger Fall to $145
If Solana loses the $170.53 support, the next clear downside target is $161.74, with a potential drop to $145–$150 if market sentiment worsens or Bitcoin loses traction.
To invalidate the bearish outlook, SOL must close above $175 with strong volume. Until then, caution dominates the market.
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