Solana Rebounds to $143 After 28% Drop: Can the Recovery Hold as FTX Deposits SOL to Binance?

Solana has shown a rebound to $143 after a significant 28% crash, recovering 4% in the past 24 hours. This recovery, however, could face challenges as FTX continues to deposit large amounts of SOL to Binance, creating potential selling pressure that could impact the coin’s price stability.

The recent downturn in Solana’s price was partly triggered by a wave of profit-taking following initial optimism around President Trump’s U.S. Crypto Strategic Reserve announcement on March 2. Solana initially surged to $179, but the price plummeted to $130 after Trump’s confirmation of tariffs on Canada and Mexico, which led to broader market uncertainty.

Despite the volatility, Solana’s Decentralized Exchange (DEX) sector remains robust. According to data from DeFiLlama, Solana has maintained its position as the leader in DEX volume for five consecutive months, reaching $109 billion—24% higher than Ethereum. Although the memecoin market has cooled, DEX platforms such as Raydium, Meteora, and Orca are still driving significant trading activity, suggesting strength in Solana’s ecosystem.

From a technical analysis perspective, the 9-day EMA (Exponential Moving Average) is acting as resistance, signaling a bearish trend. Key support is located at $136, while resistance levels are at $150.05, $166.32, and $179.01. The Relative Strength Index (RSI), at 39.65, is just above the oversold zone, indicating the possibility of a brief price recovery if momentum shifts positively.

However, the overall market sentiment is still downward, and Solana might try to recover toward $166 if it breaks above $150. On the other hand, the price could dip further if $136 support is not maintained.

Another key factor adding to the uncertainty is the ongoing activity of FTX’s bankruptcy estate. Recent on-chain data from Lookonchain revealed that an FTX-linked address unstaked 3.03 million SOL (worth $431.3 million), with 24,799 SOL ($3.38 million) transferred to Binance on March 4, followed by another 58,964 SOL ($8.52 million) deposit on March 5. This continued selling pressure from FTX, coupled with broader market volatility, adds a layer of risk for Solana’s price recovery.

Traders will be closely monitoring whether Solana can hold its current support level and if the FTX-related sales will weigh further on the market, potentially derailing its recovery.