Crypto Trader Warns of Solana Sell-Off, Says SOL Bottom Should Take a While To Form

A close­ly fol­lowed cryp­to strate­gist believes that Solana (SOL) is still in a down­trend despite last week’s surge.

Pseu­do­ny­mous ana­lyst Alt­coin Sher­pa tells his 196,300 fol­low­ers on the social media plat­form X that Solana is fac­ing a key resis­tance lev­el at around $19.50.

Accord­ing to the ana­lyst, Solana has been print­ing bear­ish low­er-high setups ever since hit­ting its 2023 high of $32.30 in July.

“Would be cau­tious on this cur­rent move up. It’s nice to see some recov­ery but every ral­ly the last few weeks has result­ed in just a low­er high. Regard­less, if you’re in it for an invest­ment, it cant be bad to accu­mu­late sub-$20.” 

At time of writ­ing, SOL is trad­ing for $19.04, up over 8% from its sev­en-day low of $17.57.

Should SOL’s lat­est ral­ly fade, Alt­coin Sher­pa says that the $14 lev­el could act as sup­port. How­ev­er, he warns that SOL’s prospects of stay­ing above $14 all depend on how the bank­rupt cryp­to exchange FTX liq­ui­dates its mas­sive Solana trove to the tune of $1.16 billion.

“This one should take a while to form a bot­tom though. I don’t know if the FTX stuff is ‘priced in.’ The next few months will be very inter­est­ing to see how the price reacts to the large sup­ply on the market.” 

While Alt­coin Sher­pa is sound­ing the alarm about FTX’s large Solana hold­ings, investor Chris Bur­niske tells his 263,400 fol­low­ers on the social media plat­form X that only a tiny amount of the defunct cryp­to exchange’s SOL trove is liquid.

“Only ~13% of FTX’s SOL hold­ings are liquid.” 

Bur­niske, who is a part­ner at the cryp­to-focused ven­ture cap­i­tal firm Place­hold­er, says that he’s long-term bull­ish on SOL despite its FTX baggage.

“ETH and BTC both have bag­gage and have made new ATHs (all-time highs) in each major expan­sion. Every human is flawed, every insti­tu­tion is flawed and every coin is flawed. 

In oth­er words, we all have bag­gage, and many of us, be it a human, insti­tu­tion, or coins, con­tin­ue to make new ATHs.” 

Don’t Miss a Beat – Sub­scribe to get email alerts deliv­ered direct­ly to your inbox 

Check Price Action

Fol­low us on Twit­ter, Face­book and Telegram

Surf The Dai­ly Hodl Mix

Check Lat­est News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Gen­er­at­ed Image: Midjourney