The cryptocurrency world is pacing at its usual vibrant rhythm, with interesting dynamics in the Solana (SOL) landscape. This time, it’s Solana’s impressive resilience in the face of potential mass liquidation. Notably, Solana, the enabler of the layer-1 smart-contract platform, has seen recent gains of over 3% despite fears of the proposed liquidation of more than $1 billion in SOL tokens by bankrupt crypto exchange FTX — about 16% of Solana’s total supply.
When FTX announced its plans to liquidate $3.4 billion of its digital asset holdings, there was reasonable anxiety about SOL’s market stability. Despite this, the token managed to rally, leaving us to consider if the mass panic was just a storm in a teacup. Interestingly, the current structure of FTX’s holdings doesn’t allow for a precipitated SOL dump that could risk a significant market crash. The majority of FTX’s Solana tokens remain vested until 2028.
As we analyze the performance of SOL, an approximate 10% rally from its weekly lows births optimism. Questions arise, asking if the SOL sell-off phase has called it a day. The token saw a dip from its July peak ($31 per token) which spawned a restrictive downtrend and a resistance wall at the 21DMA. If SOL can breach these barriers, potential retests of the 100 and 200DMAs at about $21 and the support-turned-resistance point around the $22 mark are plausible.
While focusing on Solana’s exciting telemetry, crypto investors might want to shred some risk by exploring alternatives. One such instance is an attention-grabber launched by Wall Street Memes, a considerably large retail investing community on the internet. Their new coin $WSM is touted as a possible frontrunner in the league of meme coins. Boasting pre-sale success with over $25 million raised, the clock ticks for investors who wish to join the bandwagon before the pre-sale ends in a fortnight. Crypto is not for the risk-averse, marking its spot as a high-risk asset class. Therefore, while riding the wave of such tumultuous crypto tides, it’s crucial to arm oneself with informed decisions and thoughtful strategies, more than ever.
Source: Cryptonews
