TLDR
- Solana dropped to $169 on Friday (May 16, 2025) after FTX announced $5B creditor payout
- About 1.4 million SOL tokens worth $236M were unstaked in the past week
- Key technical levels include support at $155 and resistance at $180
- Bitcoin’s stability above $100K may help cushion Solana’s downward movement
- Altcoin ETF approval odds remain high at 82% according to market data
Solana’s price has taken a hit following news about FTX’s plans to distribute assets to creditors. The popular Layer-1 token fell to $169 on Friday, breaking below the $170 level for the first time this month.
This 4% price drop came after the bankrupt crypto exchange announced its upcoming $5 billion payout.
On May 15, FTX revealed it would begin distributing digital assets to claimants starting May 30. The exchange will use BitGo and Kraken to process these payments, with settlements expected to complete within 1-3 business days.
Market data shows that over 1.4 million SOL tokens were unstaked in the past seven days. At current prices, these tokens are worth approximately $236 million.
Experts believe this unstaking activity is likely connected to FTX’s preparations for its upcoming distribution. The exchange needs to liquidate assets to fulfill its obligations to creditors.
Large token movements of this nature often create downward price pressure. When such volumes enter trading platforms or OTC markets, they can trigger further selling.
Market Reactions
The decline in Solana’s price is not happening in isolation. Other major cryptocurrencies have also experienced downturns. Ethereum dropped 2.7% to $2,500, while XRP and Cardano each lost about 4% of their value.
This pattern suggests broader market forces are at work. Investors may be taking profits ahead of expected volatility from the FTX payout.
Despite the pressure on altcoins, Bitcoin has maintained its position above the $100,000 mark for seven straight trading days. This marks the longest such streak since January 2025.
Bitcoin’s stability might help prevent a more severe market correction. Historically, when Bitcoin holds steady, large-cap altcoins like Solana tend to find support more quickly.
Technical Picture
Looking at Solana’s chart, the token had been showing strength earlier this month by climbing above the $150 resistance level. It had settled above the 23.6% Fibonacci retracement level of the downward move from its $295 high to $95 low.
SOL is currently holding above the 50-day simple moving average. A bullish trend line has formed with support near $155 on the daily chart.
The immediate challenge for buyers is the $180 resistance level. If SOL can break above this point, it could target the $195 level next. This price zone aligns with the 50% Fibonacci retracement level of the earlier downward move.
Should buyers remain active above the trend line, Solana could resume its upward movement. However, failure to overcome the $180 resistance might trigger another decline.
If selling pressure increases, key support levels to watch include $155 near the trend line. A break below this point could send the price toward the $142 level and the 50-day moving average.
ETF Prospects
One factor that could help Solana recover is the growing optimism around altcoin ETFs. Market data shows an 82% probability of SEC approval for such funds by June 16.
Many traders view Solana as a strong candidate for ETF inclusion. This prospect might attract buyers looking to position themselves ahead of potential regulatory approvals.
For bulls to regain control, Solana needs to reclaim the $170 level and maintain support above $150. With positive ETF sentiment and stable Bitcoin prices, a recovery is possible if new buyers enter the market.
Until then, SOL remains vulnerable to further price drops, especially if large holders continue to sell their positions.
