Solana Bounces Back: FTX Sell-Off Impact and Future Price Surge
- SOL rebounds to $55.31 after a dip to $51.27, showing strength after a 20% drop from the $63.80 peak.
- FTX’s diminished SOL liquidity at $185,000 triggers criticism from crypto enthusiasts.
- Despite FTX’s massive daily sales, market resilience hints at a potential price surge after their diminished selling.
Solana (SOL) has exhibited remarkable resilience in the face of recent market turbulence, clawing back from a dip to $51.27 to currently trade at $55.31, marking a 7% recovery. This resurgence comes after a tumultuous period that saw SOL soar to an impressive peak of $63.80, only to retract nearly 20%.
A critical factor influencing Solana’s volatility has been the actions of FTX. Analysis from Lookonchain revealed a significant depletion in FTX’s SOL liquidity, down to a mere $185,000 in public addresses. Crypto enthusiasts voiced sharp criticism toward FTX’s strategy of liquidating SOL holdings, denouncing it as a misguided move in the history of crypto. Observations suggest that FTX’s liquidation spree has concluded, indicating a potential end to its direct impact on SOL’s pricing dynamics.
Notably, despite FTX’s consistent daily sales ranging from 250,000 to 700,000 SOL over the past three weeks, the market has shown impressive resilience. Experts speculate that with the waning availability of FTX’s unlocked tokens, SOL might be poised for a substantial surge in value. This sentiment echoes through the crypto community, with analysts suggesting that the reduced selling pressure from FTX could set the stage for a significant price uptick in SOL.
Furthermore, while FTX has offloaded 6.996 million SOL in recent weeks, they retain a substantial stockpile. Insights into FTX’s holdings reveal that while most SOL transfers from their cold wallets have been completed, a notable amount remains staked in liquid stake solutions, potentially available for future sale.