Solana Price at Risk as FTX Dumps Millions – Here’s What to Expect Next
Qadir AK15 Oct 20242 min read
Solana (SOL), a major layer-one blockchain, still has ties to the collapsed FTX and Alameda Research nearly two years after their downfall. As FTX prepares to repay its investors in the fourth quarter of 2024, it’s expected to increase its sales of Solana tokens to raise the necessary funds.
Here’s everything you need to know.
FTX’s SOL Sale Raises Eyebrows
A recent transaction by FTX/Alameda has drawn attention in the crypto space, as the company redeemed 178,631 SOL tokens worth $28 million. On-chain analyst Ember revealed that these tokens, previously staked as part of Solana’s proof-of-stake system, will likely be transferred to major exchanges like Coinbase or Binance. This large movement follows a pattern, with FTX/Alameda regularly transferring around 170,000 SOL tokens each month.
At present, around 7.09 million SOL tokens (valued at over $1.1 billion) remain staked at the H4y…gFZ address.
SOL Market Impact
As FTX moves closer to compensating its investors, one big question remains: Will Solana bear the consequences of these token sales? The large-scale redemption of SOL has sparked concerns about its possible impact on the Solana network and the broader cryptocurrency market.
Since FTX’s collapse in November 2022, Solana’s price has been closely linked to changes in FTX/Alameda’s holdings. The exchange’s failure caused Solana’s value to drop to $8 per token. Now, with FTX continuing to sell its SOL holdings, many are watching to see how this could affect Solana’s staking rewards and network security.
SOL Price Analysis
Recently, Solana (SOL) saw a strong rally, climbing 20.43% and reaching $160 on October 14, 2024. After hitting a high of $157.8, the price dropped slightly to $155 due to early profit-taking and bearish pressure. Despite this, SOL remains in a bullish trend, supported by over $2 billion in long-term SOL staking, showing strong confidence from holders.
Watch these levels!
As Solana consolidates, the $150 support level will be critical for maintaining its upward momentum. If SOL breaks above $160, prices could rise to $165. However, a breakdown could see a retest of lower support levels around $144.
FTX’s actions could make or break Solana. What do you think will happen next?
