Key Points:
- FTX sells over $350M in cryptocurrency assets, with SOL and ETH leading in trading volumes.
- Despite the substantial sales, Solana’s price remains resilient, showing an upward trend.
- Ethereum experiences a bull trend but undergoes a price decline, trading above $1,800 amid FTX’s sales.
Recent reports indicate a continuous movement of assets by FTX to various exchanges for sale, sparking increased attention on Solana (SOL). Alongside SOL, other assets linked to the exchange have also been made available for sale, prompting an analysis of the impact on the price trends of Solana and Ethereum (ETH), two significant assets associated with FTX.
FTX’s substantial sales surpassing $350 million
🚨🚨 [Updated] #FTX and #Alameda further transferred out $38.5M worth of 7 assets to exchanges ~6hrs ago:
750,000 $SOL ($31.2M)
325,501 $ENS ($2.76M)
10.1M $GMT ($2.22M)
642,702 $LDO ($1.26M)
288,211 $APE ($410K)
127,407 $BADGER ($365K)
555,342 $BNT ($323K)Overall, as of Nov… https://t.co/fJT2m0KLnG pic.twitter.com/ngJ4v4Wuxo
— Spot On Chain (@spotonchain) November 8, 2023
Spot On Chain’s analysis of FTX transactions reveals that the exchange has successfully moved over $350 million in cryptocurrency assets. Notably, Solana and Ethereum have recorded the highest trading volumes among the assets transferred. The breakdown reveals that FTX has sold over 5.4 million SOL, valued at more than $211.8 million, and 17,504 ETH with a total value exceeding $31.7 million.
Court filings indicate that FTX holds cryptocurrencies worth $3.4 billion, including $1.16 billion in Solana, $560 million in Bitcoin (BTC), and $192 million in Ethereum. This suggests that the current sales represent only a fraction of the exchange’s total holdings.
Potential market impact and responses from SOL and ETH
Questions arise about whether these ongoing sales could potentially negatively impact the market, despite the gradual release of assets. Analyzing the daily timeframe chart of Solana reveals that FTX sales have not significantly influenced its price trend. As of the latest report, Solana is trading at around $43, showing a modest price increase of nearly 1%.
Further analysis indicates that Solana has been on an upward trend for the past three days, with its Relative Strength Index (RSI) remaining above 70, signifying a strong bull trend.
Shifting focus to Ethereum, it is also experiencing a bull trend, as indicated by the RSI. However, Ethereum is undergoing a price decline at the moment, in contrast to Solana. Nevertheless, it is still trading above the $1,800 mark.
It’s important to note that the ongoing bull trends for both Solana and Ethereum might help alleviate the impact of the FTX sales in the short term. However, the long-term effects, especially on Solana, remain uncertain amid continued sales.
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