Solana (SOL) continues to show strength as it trades above the critical $120 level, even as the defunct crypto exchange FTX unstaked over 186,000 SOL—worth nearly $22 million—in preparation for its upcoming creditor repayments.

Despite concerns that this move might signal imminent selling pressure, the market has so far remained resilient. With Solana consolidating gains and technical indicators flashing bullish signals, analysts are now watching closely to see if SOL can break higher toward key resistance zones at $135 and beyond.

Solana Bounces Back After Holding Above $100

After briefly dipping below $100 due to broader market volatility and ongoing concerns around the FTX liquidation process, Solana quickly recovered and reclaimed key levels. The token has since stabilized, hovering around the $120 mark, with traders optimistic about further upside potential.

This recovery comes as part of a broader market rebound, led by Bitcoin climbing back above $81,000, helping to lift sentiment across major altcoins. In Solana’s case, maintaining support above $100 appears to have re-energized bullish momentum, with traders now eyeing $125 as the next critical resistance.

A breakout above $125 could pave the way for further gains to $135, and potentially to $177 in the medium term if current trends continue.

FTX’s Unstaking fuels Caution

The recent unstaking of 186,000 SOL tokens by the FTX estate has stirred cautious speculation. These tokens, currently worth over $22 million, were unstaked ahead of FTX’s court-approved repayment plan scheduled for May. This has raised fears of potential selling pressure if these tokens are distributed to creditors and then offloaded on the open market.

However, it’s important to note that unstaking does not necessarily imply an immediate sale. The FTX liquidation team may choose to distribute assets gradually, or in some cases, creditors may decide to hold rather than sell at current prices. As such, while a pullback remains a possibility, no significant price reaction has been observed yet.

Whale Accumulation Offsets Bearish Concerns

Interestingly, despite the FTX development, on-chain data shows that whale wallets have been steadily accumulating SOL, further reinforcing the bullish case. High-volume purchases across major exchanges suggest confidence in Solana’s long-term prospects, particularly as it continues to dominate the Layer 1 ecosystem alongside Ethereum.

With Solana’s DeFi and NFT sectors showing signs of recovery and increasing transaction volume, large investors appear to be positioning for a continued rally.

Technical Outlook: Bullish Bias Still in Play

From a technical analysis perspective, SOL is currently trading within an ascending triangle pattern, typically considered a bullish continuation setup. The token is now testing a key resistance zone between $119.54 and $120.84. A clean break above this zone on strong volume would likely confirm a breakout.

Momentum indicators also support the bullish thesis. The Relative Strength Index (RSI) is trending upward, indicating growing buying pressure. Meanwhile, the Stochastic RSI has entered overbought territory—a signal that could suggest a short-term pullback is possible, but not guaranteed.

As long as RSI remains in an uptrend and SOL continues to hold above the lower bounds of the triangle, the path of least resistance appears to be to the upside.

Is a Pullback Coming?

While there’s no immediate cause for alarm, traders should remain cautious in the short term. The market may experience some volatility, especially if large amounts of unstaked SOL are sold on the open market. Profit-taking near $125 is also possible.

Still, if support holds and whale accumulation continues, the next upside targets of $135 and even $177 could be within reach in the coming weeks.

Final Thoughts

Solana has weathered yet another potential storm with resilience. The FTX estate’s unstaking of 186,000 SOL has raised eyebrows, but market fundamentals and technical indicators suggest bulls remain in control—at least for now. With whale interest climbing and broader market sentiment improving, Solana’s rally may just be getting started.