- FTX’s sale of over $10 million worth of SOL tokens sparks investor concerns.
- Solana’s recent bullish run faces a potential setback due to market indicators.
- Analysis of SOL’s liquidity, trading volume, and key indicators in the wake of FTX’s actions.
In recent developments, the prominent cryptocurrency exchange FTX has offloaded more than $10 million worth of SOL tokens. This move has sparked some concerns among investors as market indicators are now showing bearish signals for the Solana (SOL) token.
Solana has held a steady position in the top 10 list of cryptocurrencies for a considerable time, benefiting from the recent bullish market conditions. Over the past week, SOL witnessed an impressive double-digit price surge, which pushed its value higher.
Despite these positive gains, FTX’s recent substantial sale of SOL tokens has raised questions about the token’s future performance. CoinMarketCap data indicates that SOL’s value increased by more than 12% over the last seven days, with the token trading at $32.20 and boasting a market capitalization of over $13.49 billion, making it the seventh-largest cryptocurrency.
However, recent data suggests that SOL’s price experienced a drop of over 0.2% in the last 24 hours, potentially due to FTX’s actions. FTX transferred more than 300,000 SOL tokens, valued at over $10 million, which may have contributed to this price dip.
FTX/Alameda transferred $19.4M assets again today, including:
7,275 $BOND($30K)https://t.co/Pn82059rin pic.twitter.com/yukVPUEJt4
— Lookonchain (@lookonchain) October 28, 2023
Despite FTX’s transfer of SOL tokens, it is worth noting that investors have not been actively selling the token, as indicated by Solana’s liquidity heatmap provided by Hyblock Capital. The most significant liquidation event occurred on October 27, coinciding with SOL’s price surpassing the $33 mark.
While Solana’s liquidity situation appears stable, its trading volume has notably declined in the past week, reflecting investors’ reluctance to engage in token trading. This drop in trading activity has led to a decrease in Solana’s Price Volatility 1w over recent weeks. However, SOL’s demand in the futures market remained strong, evident from its positive Binance Funding Rate.
Investors are advised to exercise caution, as various market indicators are currently bearish. SOL’s Relative Strength Index (RSI) is in overbought territory, which may lead to increased selling pressure and potential price declines. Nevertheless, its Chaikin Money Flow (CMF) has displayed a bullish trend in recent times, adding complexity to the overall analysis of SOL’s performance.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.