TLDR
- Solana price dropped 4% to $169 following FTX’s announcement of a $5 billion creditor payout
- Over 1.4 million SOL ($236M) was unstaked this week, likely part of FTX’s planned liquidation
- SOL needs to reclaim $170 and hold above $150 to maintain momentum
- Solana is currently consolidating above $155 support with resistance at $180
- Bitcoin’s stability above $100K could potentially help stabilize Solana’s price
Solana (SOL) has experienced a price decline following news about FTX’s upcoming creditor payouts. The cryptocurrency dropped 4% to hit $169 on Friday, May 16, 2025, falling below the $170 support level for the first time this month. This decline comes after the bankrupt crypto exchange FTX confirmed plans for a $5 billion distribution to creditors.
The price movement reflects market reaction to FTX’s announcement that it would begin distributing digital assets to claimants starting May 30. This payout will be processed through BitGo and Kraken, with settlement expected within 1-3 business days.
The timing of this announcement aligns with increased SOL unstaking activity. Data shows over 1.4 million SOL has been withdrawn from staking positions in the past seven days. At current prices, this unstaked SOL is valued at approximately $236 million.
Market analysts believe these unstaking actions likely include large portions held by FTX, which has been working to liquidate its crypto assets. Such large token movements typically create selling pressure, especially when the assets enter exchanges or OTC desks for liquidation.
Broader Market Context
Solana’s sell-off appears to be part of a wider downturn affecting Layer-1 tokens. Other major cryptocurrencies like Ethereum fell 2.7% to $2,500, while XRP and Cardano posted 4% losses each.
This synchronized decline suggests macro-driven selling pressure. Investors may be locking in profits before FTX’s payout introduces additional volatility to the market.
Despite SOL’s pullback, Bitcoin has maintained its position above $100,000 for seven consecutive trading days, the first such stretch since January 2025. This stability in Bitcoin could help contain broader market panic.
According to market data, Bitcoin’s resilience often helps stabilize sentiment in large-cap altcoins such as Solana. This relationship may prove important in the coming weeks.
Technical Analysis Perspective
From a technical standpoint, Solana started a fresh increase above the $150 resistance level earlier this month. The price settled above the 23.6% Fibonacci retracement level of the downward move from the $295 swing high to the $95 low.
Currently, SOL is stable above the $170 level and the 50-day simple moving average. There is also a key bullish trend line forming with support at $155 on the daily chart.
The immediate resistance is near the $180 level. A convincing move above this resistance could start a fresh increase, with the first major resistance sitting near the $195 level. This level is close to the 50% Fibonacci retracement level of the downward move from the $295 swing high to the $95 low.
Should SOL maintain support above the trend line, it could potentially start an upward movement. However, if it fails to surpass the $180 resistance, another decline might occur.
The first major support sits near the $155 level and the trend line. If there is a close below this support, the price might test the $142 support and the 50-day simple moving average.
ETF Optimism Remains
Despite current price pressure, market optimism regarding potential Solana ETF approval remains high. PolyMarkets data currently shows an 82% probability of SEC approval for altcoin ETFs by June 16.
Solana ETF approval odds on Polymarket suddenly fell 9% several hours before news aggregators began posting about the SEC delaying its Grayscale spot ETF decision.
Someone seems to have gotten the news before Twitter found it — and placed a big (kind of dumb) trade on it. pic.twitter.com/0g7MP31Ukh
— Jack Kubinec (@whosknave) May 13, 2025
This could position Solana as a potential buy for traders looking to anticipate a possible SEC approval verdict next month.
For bulls, reclaiming the $170 level and holding above $150 is essential to sustain momentum. With ETF optimism still present and Bitcoin holding firm, a rebound remains possible if fresh market demand emerges to offset the ongoing Solana sell-offs.
Until then, Solana price remains vulnerable to further downside risk, especially if large wallet holders join the selling activity.
The 4% SOL price dip from Thursday reflects both internal selling pressure and broader market rotation. FTX’s $5 billion distribution and associated unstaking remain the dominant narrative influencing Solana’s price this week.
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