As a seasoned researcher with decades of experience navigating the volatile cryptocurrency market, I must admit that the recent revelation about FTX and its alleged Solana token stash has sent ripples of unease throughout the community. With my fingers crossed, I’ve closely monitored the market’s reaction to this news, and it seems the speculation has indeed taken a toll on Solana’s price.
It has been revealed recently that the failed cryptocurrency exchange FTX, which filed for bankruptcy, may possess a significant quantity of Solana tokens, potentially up to 8% of the total SOL supply. A source claiming to have inside information has made this allegation. As a result, Solana is currently experiencing turmoil due to this revelation.
If accurate, the cache might contain around 46.5 million Solana (SOL) coins, which would be worth roughly $7 billion based on the current market value of each coin being $150.
A user on social media identified as ‘Wise Advice’ warned, “I don’t foresee Solana reaching zero, but if FTX decides to offload these tokens, it could significantly affect Solana’s value.” In fact, after this disclosure, the price of Solana dropped below the significant $160 support point.
Over the last fortnight, there’s been a significant decrease of over 9% in the value of SOL. About 4% of this drop took place within the past day, coinciding with widespread rumors concerning a secret reserve held by FTX.
As a seasoned investor with years of experience in the crypto market, I find the recent sale of SOL tokens by the FTX estate quite intriguing. Just two months ago, the estate sold off approximately $2.6 billion worth of SOL at around $102 per token to repay creditors. Given my personal investment journey and understanding of the volatile nature of the crypto market, I believe this was a strategic move that could potentially yield substantial returns in the long run.
Yet, the suggested FTX reserve might outshine the influence of prior transactions. In the event that approximately $7 billion in SOL tokens were to be offered for sale publicly, it could generate significant selling force within the cryptocurrency market, possibly disrupting its upward trend.
According to analyst Pratty Crypto, technical signs hint that Solana (SOL) might continue to dip. Pratty observes that currently, SOL is trading under its average price from the last quarter, testing significant support zones, and retracting approximately 62% of its recent surge in value. Given these conditions, Solana may be vulnerable to slipping into the $140s. A more substantial drop into the $130-$150 range might prove challenging to recover from.
A significant number of investors are preparing to bid aggressively in the $140s range.
— ً (@PrattyCrypto) August 2, 2024
Despite no confirmed verification of the rumored token sales by the FTX estate and lack of an official statement, the market continues to show signs of tension.
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2024-08-03 13:56