Solana’s price may soon decline due to selling pressure stemming from a court ruling allowing the bankrupt cryptocurrency exchange FTX to liquidate billions in assets. This includes large holdings of Solana as well as itcoin">itcoin">Bitcoin, Ethereum, and other cryptocurrencies.
Solana is currently trading within a descending channel and facing resistance around $18.42. If bullish momentum falters, the price could break below support at $17.34 and fall towards the $16 range, marking a 12% drop. However, some investors appear to be accumulating on the weakness which could propel Solana above channel resistance.
Data shows FTX held over $1 billion in Solana as of August 31, making it a major holder. The court approval to sell assets is bearish for Solana, though much of FTX’s holdings are locked until 2028. Still, steady selling by such a large holder could continue weighing on Solana’s price, unless an over-the-counter deal emerges.
On Wednesday, the court allowed FTX to liquidate $3.4 billion in crypto assets including Solana, itcoin">Bitcoin, and Ethereum. Sales will be capped at $50-200 million per week. Some argue that FTX did not single-handedly support Solana’s price, though its collapse preceded an enormous drop in Solana’s market capitalization. Ultimately, absorbing $3.4 billion in sales presents meaningful downside risk.
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