FTX sells Solana – should investors be worried?
- SOL was down marginally over the last 24 hours.
- Solana’s volume also dropped, while its RSI and MFI entered overbought zones.
Solana [SOL] has managed to maintain its position on the top 10 list for quite some time. The token also capitalized on the recent bull rally, as its price rallied in double digits over the last week.
Is your portfolio green? Check out the SOL Profit Calculator
However, FTX, the infamous crypto exchange that caused massive havoc a few months ago, has transferred a substantial amount of SOL in the recent past.
FTX is selling Solana
Solana has been forming very well in the recent past, thanks to the bullish market condition. Thanks to that, the token has performed really well and has managed to lift its price by double digits in the last seven days.
According to CoinMarketCap, SOL’s value surged by more than 12% over the last seven days.
At the time of writing, the token was trading at $32.20 with a market capitalization of over $13.49 billion, making it the seventh-largest crypto. Even as SOL’s weekly chat was green, the token’s recent developments told a different story.
As per CoinMarketCap, SOL was down by over 0.2% over the last 24 hours. A possible reason behind this current price drop could be due to an act from FTX. As per the latest data, FTX transferred more than 300,000 SOL tokens, which were worth over $10 million.
UPDATE:
FTX/Alameda transferred $19.4M assets again today, including:
309,185 $SOL($10M)
2.03M $BAND($3.15M)
3.82M $PERP($2.3M)
46.67M $TRU($1.78M)
4.39M $BICO($1M)
915,048 $KNC($686K)
5.47M $CVC($479K)
7,275 $BOND($30K)https://t.co/Pn82059rin pic.twitter.com/yukVPUEJt4— Lookonchain (@lookonchain) October 28, 2023
Though FTX transferred SOL, a look at Solana’s liquidity heatmap revealed that investors were not actually selling the token. This was evident from SOL’s liquidation heatmap, provided by Hyblock Capital.
The last major liquidation happened on 27 October, when SOL’s price went over the $33 mark.
Source: Hyblock Capital
While Solana’s liquidation level looked stable, the same can’t be said for its performance on other fronts. SOL’s trading volume dropped substantially over the last week, meaning that investors were reluctant to trade the token.
Because of the recent price downtrend, Solana’s Price Volatility 1w also plummeted over the past few weeks. Nonetheless, SOL remained in demand in the futures market, which was evident from its green Binance Funding Rate.
Source: Santiment
Read Solana’s [SOL] Price Prediction 2023-24
Investors must practice caution
Like most of the aforementioned metrics, market indicators also remained bearish. For example, SOL’s Relative Strength Index (RSI) was in overbought zones. This can increase selling pressure and, in turn, drop the token’s price further.
Nonetheless, its Chaikin Money Flow (CMF) remained bullish as it registered an uptick in the recent past.
Source: TradingView
