Why did SOL price drop?

Solana's price fell 5.74% in 24 hours to $169.15 due to risk aversion across the market, technical support levels being broken, and liquidity concerns related to FTX.

Market-wide selling pressure (total crypto market cap down 3.02%)

$43.8 million in SOL long position liquidations accelerated the decline

Staked SOL due to FTX creditors' repayment risks

Detailed Analysis

1. Main Cause

FTX/Alameda's staking lock: FTX and Alameda staked $45 million worth of SOL a few weeks before repaying creditors (CoinMarketCap). This reduced the amount of liquid SOL in the market and increased concerns that forced sales could occur if funds were needed for September payments.

Staking on Solana locks tokens for approximately 2-7 days.

If market conditions deteriorate, creditors may demand the sale of assets.

2. Technical Situation

SOL has broken below critical support levels:

- The $175.59 pivot point has been breached.

- The 38.2% Fibonacci retracement level ($182.79) is acting as resistance

- The MACD histogram (-2.1) confirms the downward momentum

Over the past 24 hours, $43.8 million in liquidations occurred (96% of liquidations were long positions) (Coinglass), triggering consecutive sell orders. While the RSI (48.4) presents a neutral outlook, a downward trend is evident.

Conclusion

The decline in SOL reflects the overall weakness in the cryptocurrency market, the breakdown of technical support levels, and liquidity concerns stemming from FTX. The 160-165 dollar range should be monitored; a sustained decline below this level could deepen losses, but reclaiming the 175.59 dollar pivot point could help stabilize prices.

What's Next? Will the SOL staked by FTX remain locked until September payments, or will it create a sudden supply shock in the market?