Solana Price Forecast As FTX Cold Wallet Transfers Rock The Market, Should You Be Buying SOL’s Dip?
Solana Price Forecast: The unofficial ‘Ethereum killer, is reaching out for fresh gains following a correction due to resistance encountered at $65. Bitcoin changed the outlook of the crypto market during the weekend as it blasted above $40,000, and $42,000 on Monday.
While Solana price sustained the uptrend, a brief correction followed to $60. This support must hold to keep the competitive smart contracts token buoyant, otherwise, investors may begin acclimatizing to a sub $50 SOL.
Solana Price Forecast: Bullish Euphoria Could Propel SOL To $100
Many people feel that buying Solana at $60 is still a steal despite the rally from $20 in early October and $8 following the FTX crash in November 2022.
Although support at $60 is not guaranteed, declines into the $50 range might be a lifeline opportunity to buy the dip ahead of the next breakout targeting $100. During the previous bull run, Solana exploded to $260 in months before trimming most of the gains due to the crypto winter and other internal forces like the Terra Luna crash and the FTX implosion saga.
Solana price currently sits on top of support provided by the 50 Exponential Moving Average (EMA) (red) at $60.57 while the 21 EMA (blue) caps upward price action at $61.37.
The Moving Average Convergence Divergence (MACD) indicator conveys a grim picture, with Solana likely to fall into the bearish trap or consolidation before the next move up.
Traders may want to keep an eye on the MACD because a bullish crossover would imply that a trend reversal is on the way.
Two ascending trendlines drawn on the chart are in line to provide the much-needed support. The first dotted trendline could see Solana abandon the bearish outlook immediately and start reaching for gains toward $100.
If overhead pressure overwhelms the bulls perhaps due to resistance at the 21 EMA, the lower trendline would be in place to arrest the bearish situation, with support at $58 standing out. Other key levels to keep in mind while trading SOL are $54 and $52, respectively.
Recommended for you: Binance Lists LUNC, IOTA, & Other Spot Trading Pairs As Terra Classic Price Rallies
FTX Cold Wallet Transfers Shake Solana Price
Solana’s uptrend started to falter on Tuesday after blockchain data company Lookonchain highlighted a couple of SOL transactions linked to FTX’s cold wallet.
According to the post on Twitter (now X), a cold wallet connected to FTX unstaked 1.5 million SOL, worth around $90 million at the time. Another transaction of 4.13 million SOL worth approximately $248 million to Coinbase also raised eyebrows.
1/ FTX-related address “4Axqyo…HswTAh” unstaked 1.5M $SOL($90M) 2 hours ago and transferred it to “3vxheE…5mgkom”.
And we noticed that “3vxheE…5mgkom” deposited 4.13M $SOL($248.67M) to #Coinbase 11 hours ago. pic.twitter.com/pQRNDZCvgy
— Lookonchain (@lookonchain) December 5, 2023
The bankrupt exchange has been liquidating its crypto holdings, including Solana to repay creditors. Prior to filing for bankruptcy in November last year, FTX held $1.2 million SOL.
If Solana continues to exhibit resilience amid FTX liquidations, the gap to $100 could narrow quickly as FOMO kicks in for another ride toward the all-time high.
Related Articles
- Cardano (ADA) Price Prediction As New Bullish Pattern Hints a 40% Rally Ahead
- Terra Luna Classic Price Prediction As Daily Transactions Explode To 518k, What’s Next?
- Is It A Good Time To Buy Shiba Inu?