The market buzz these days seems to center on Solana’s (SOL) price, which has slipped by 3% within a day, settling around $17.72. This comes amidst whispers that FTX is planning to part ways with a sizeable portion of its SOL assets. Despite this, SOL has managed to climb an impressive 77% since the onset of 2023, showcasing resilience in a shaky financial landscape.
While there is merit to the fear gripping SOL enthusiasts, it’s worth noting that much of FTX’s Solana holdings remain frozen until 2025 or even later, essentially defusing the potential ticking timebomb of a mega dump by FTX. Interestingly, this rather foreboding picture has managed to push SOL into the discount zone, creating potentially profitable opportunities for strategic investors.
SOL’s technical indicators convey a state of being oversold. The 30-day moving average (yellow) has sunk below the 200-day average (blue), typically a forebear of an upcoming dip. Still, from the same lens, one could see SOL nearing a bottom. Akin to this observation, SOL’s relative strength index (purple) has plunged to 30 and might hover around the 20s before staging a rebound.
That said, the $17.65 support level will be crucial in determining SOL’s short-term performance. If it does hold, SOL might turn the current tide sooner rather than later.
The murmurs regarding FTX’s moves, or their anticipation thereof, are almost etched into SOL’s weakness narrative. Notably, an FTX-linked wallet moved Solana-related tokens worth around $10 million. However, these are yet to be liquidated.
While FTX owns $685 million worth of Solana-based tokens, SOL, per se, makes up a smaller fraction of this vast treasure. Furthermore, the unavailability of this bounty for liquidation until 2025 or later has all but ruled out a FTX-triggered market dump. This should come as a sigh of relief for SOL enthusiasts and potential investors scouting for discounted purchases.
Solana’s impressive run through 2023, marred by pockets of turbulence, saw several upticks in adoption and usage. One standout event was Visa’s decision to draft Solana for its stablecoin experiments. With this, SOL’s recovery might be just around the corner, with predictions pegging its return to $18 in the near future and possibly breaking the $20 barrier in the subsequent one or two months.
However, traders looking to make a quick buck might have to look beyond SOL due to the broader market ramifications. One such alternative is presale tokens. A key contender in this space is Bitcoin BSC (BTCBSC), a BNB Chain-based crypto that has managed to rake in over $1 million since launching its presale last week. For all interested parties, the presale and the upcoming listing details can be found on the official Bitcoin BSC website, making passive income earning strategies an exciting possibility for crypto enthusiasts.
Please note that Cryptocurrency is a high-risk asset class. This article is intended for informational purposes and should not be considered investment advice. Potential losses may equal the initial investment.
Source: Cryptonews
