The Solana (SOL) cryptocurrency has recently taken a dip of around 2% within the last 30 minutes, now trading at approximately $18.10 from its earlier highs in the $18.50 area. This, surprisingly, has been influenced by the recent permission granted to a distressed exchange FTX to commence the dissolving of its $3.4 billion worth of digital assets. Despite not immediately unloading all assets in a massive dump, it’s undeniable that this situation brings an increased sell pressure within the crypto market, with SOL feeling the squeeze due the exchange’s substantial $1.16 billion hold, nearly 16% of the blockchain’s entire supply.
Since hearsay began around potential FTX sales, SOL has experienced an approximate 8% plummet. Unfortunately, it appears the recent announcement from the ruling court on FTX’s dissolution will likely anchor SOL within a bearish trend in the short-term. Since mid-August, SOL has been gradually decreasing in value from its peak around $25, slipping beneath all of its vital moving averages, which indicates a strong resistance – a sign which tilts towards the bears.
Looking towards the future, a fall back to June’s $13 valuations seems plausible, a period when the US SEC officially regarded SOL as an unregistered security. However, while this has direct implications for the cryptocurrency’s potential adoption in the US, the sales carried out by FTX do not affect the long-term fundamentals of the crypto.
Yet, despite these recent market movements, those with a bullish perspective can identify a potential opportunity to take full advantage of this dip. SOL’s long-term adoption prospects remain promising, especially with the news from web2 payments mammoth Visa reflecting their plans to extend their stablecoin pilot to the Solana blockchain.
While never dismissing the inherent unpredictability of the crypto market, it could be beneficial for investors to diversify their portfolios. One example, as brought to the spotlight by the retail investing powerhouse Wall Street Memes, is an emerging coin labeled $WSM. Following a successful presale that raised over $25 million, this meme coin has been backed by major industry influencers and analysts for its potential for success.
The presale period for $WSM is drawing to a close, making it crucial for interested investors to make a swift decision. The opportunity to capitalize on a token that could potentially rival or surpass notable coins such as Pepe Coin, Dogecoin, and Shiba Inu is one that is worth some considerations but, do not dismiss the extreme risk nature of crypto assets – be aware of the potential for capital loss.
Source: Cryptonews
