Alameda Research has resumed its Solana [SOL] transfers. According to Onchain Lens, a wallet linked to Alameda Research moved 201K SOL, worth $15.14 million, to BitGo Custody.
The on-chain monitor observed that the token transfers occurred through multiple transactions. These tokens were distributed to multiple custody addresses.
Even after these token transfers, the main wallet still holds a significant share, with 3.016 million SOL worth approximately $226.7 million. The firm has occasionally made such transfers. Often, when these tokens move, some end up in exchanges and are sold to repay creditors.
Therefore, even with the latest transfer, the team is either preparing to sell or relocating its holdings.
However, it’s worth noting that the immediate token movement to custody doesn’t imply an immediate sale. Thus, these tokens could be another step towards distributing assets, especially with the upcoming Q3 creditor deadline.
Did the Solana market react?
For SOL holders and other market participants, such a major transfer captures market attention.
Although the transfer drew close attention, the market barely reacted. In contrast, Solana rebounded slightly and was trading at $75 at press time, despite a 2.14% daily drop that extended its 7.5% weekly decline.
As expected, this price volatility triggered a wave of liquidation, especially for long positions. According to CoinGlass data, $10.89 million in long positions were liquidated, compared to $1.9 million in short positions.
When a higher volume of longs is liquidated, it suggests that traders were overly bullish and anticipated another rebound.
Traders remain bearish, eyeing another drop
As Solana remains below $80, investors have continued to cash out at every opportunity. As a result, exchange inflows have increased significantly.
According to CoinGlass data, Solana Spot Netflow turned positive, rising to $9.02 million as of writing, a major jump from -$1.42 million.
A positive net flow suggests that more SOL has recently flowed into exchanges than out of them. Historically, higher inflows have preceded a weakened market and a price drop.
In fact, the selling pressure has significantly strengthened the downside momentum, with the Aroon Line highlighting this weakness.
The Aroon Up indicator has fallen for ten straight days, dropping from 100% to 28%. Such a sustained decline signals that the trend has lost strength and is now pushing into new lows.
At the same time, SOL fell below its Momentum-Adjusted Moving Average (MaMa), further confirming the trend’s weakness.
These two momentum indicators indicate the trend to the downside could continue. Therefore, if sellers continue to dominate, SOL risks a drop towards $70. Moreover, to invalidate this bearish outlook, Solana needs a daily close above the MaMa at $78.62.
Final Summary
- A wallet linked to Alameda Research moved 201K SOL, worth $15.14 million, to BitGo Custody.
- Solana barely moved on the news, but market momentum remains weak, with sellers dominating.
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