Sat, September 23

Solana (SOL) Shows Signs of Recovery Amid FTX Liquidation Chaos

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Solana (SOL) Shows Signs of Recovery Amid FTX Liquidation Chaos Editors News
  • Solana trading volume saw a 44% spike in the past 24H. 
  • FTX approved to sell $3.4B crypto assets in bankruptcy proceedings.

One of the major topics of discussion in the crypto world today revolves around the collapsed digital asset exchange FTX, which has received approval from Judge John Dorsey overseeing its bankruptcy proceedings to sell billions in crypto assets. This development allows FTX to proceed with the sale of $3.4 billion in assets, including Solana, Ethereum, Bitcoin, and other cryptocurrencies, by the U.S. Bankruptcy Court for the District of Delaware.

In their plan to offload these assets, which was initially outlined in August, FTX has appointed Mike Novogratz’s Galaxy Digital as the investment manager responsible for overseeing the sale. According to the plan, FTX will limit its weekly token sales to $100 million, with the possibility of increasing this limit to $200 million for individual tokens.

In response to this news, Bitcoin experienced a modest uptick of 1.28% in the past 24 hours, despite the prevailing bearish sentiment in the market. On the other hand, Solana (SOL), which had previously shown hesitancy in achieving significant gains, saw a notable surge of 6% within the same 24-hour period. Interestingly, SOL’s trading volume surged by 44% during this timeframe, whereas Bitcoin’s trading volume dipped by 14.15%.

Bearish Sentiment Prevails

It’s worth noting that Solana had faced a bearish month, with a 24% decline in the last 30 days. The current surge in SOL’s price can be seen as a recovery phase.

SOL/USDT Daily Price Chart — MA, RSI (Source: TradingView)

Analyzing SOL’s price movements on daily charts, it becomes evident that the cryptocurrency is currently under bearish dominance despite the recent uptick. The 50-day exponential moving average (EMA) stands at $21, indicating the prevailing bearish sentiment. Additionally, the daily relative strength index (RSI) sits at 39, suggesting that the asset is nearing oversold territory. 

As of now, SOL is trading at $18.68 as per data from CMC. If the price breaks below the $17.5 support level then further decline is highly likely. On the other hand, if the bulls drive the price above the $20.5 resistance level then a fresh rally is on the cards.

A creative writer with a flair for storytelling and a deep interest in cryptocurrencies and blockchain technology.