Solana Price Prediction as Rumors Emerge of FTX Dumping Tokens – Can SOL Drop Below $10?
The price of SOL has dropped by 3% in the past 24 hours, falling to $17.72 after speculation emerged that FTX is readying itself to offload its Solana-related holdings.
SOL is now down by 10% in the past week and by 27% in the last 30 days, although the altcoin remains up by 77% since the beginning of the 2023, which has been a year of recovery for the token.
And while FTX does sit on a large quantity of Solana, much of this is locked up until 2025 or later, meaning that the risk of a big dump from FTX is minimal.
If there's one good thing about the current FTX-related scare, it's that it has made SOL available at a considerable discount, with the coin's main indicators showing that its distinctly oversold right now.
Its 30-day moving average (yellow) has just dipped below its 200-day average (blue), a sign of an impending dip, but also a sign that SOL is due to hit a bottom very soon.
Supporting this view is the coin's relative strength index (purple), which has dived to 30 in the past few hours and which is likely to fall close to 20 in the next day or so, before rebounding.
It will therefore be interesting to see whether SOL can protect its $17.65 support level: if it does, it's likely that it will rebound sooner rather than later.
The reason for SOL's weakness at the moment comes from the aforementioned FTX rumors, which suggest that the exchange is planning to sell a a substantial chunk of its Solana holdings.
As the above tweet illustrates, an FTX-associated wallet has transferred a sum of Solana-related tokens (around $10 million), yet these haven't actually been sold.
And while FTX does sit on a grand total of $685 million in Solana-based tokens, the sum of actual SOL it holds is considerably smaller.
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