Solana Price Prediction as SOL Bounces 4% Overnight – Is the Sell-Off Over?
Despite ongoing concerns about FTX’s planned liquidation of over $1 billion in Solana (SOL) tokens, which amount to roughly 16% of the cryptocurrency’s overall token supply, SOL has mustered a rally of more than 3% on Thursday.
Solana, the token that powers the layer-1 smart-contract-enabled Solana blockchain, was last trading around $19 per token, nearly 10% up from earlier weekly lows in the mid-$17s.
A judge approved bankrupt crypto exchange FTX’s request to liquidate its $3.4 billion in digital asset holdings earlier this week.
While panic about the mass liquidation of SOL tokens weighed heavily on the price recently, cooler heads appear to be prevailing, with Solana now up nearly 4% for the week.
That’s because FTX won’t be able to unload all of its Solana tokens onto the market in a massive dump that could cause a huge price crash.
Rather, the bulk of FTX’s Solana tokens are vested until as late as 2028.
In light of the near 10% rally from earlier weekly lows, traders are asking whether the Solana sell-off might now be over.
Solana has been in a downtrend since hitting highs for the year back in July above $31 per token.
Since mid-August, SOL’s price has been capped by a downtrend and the 21DMA.
If the cryptocurrency is able to break to the north of these resistance levels, the door would be opened for a retest of the 100 and 200DMAs around $21 and a key medium-term zone of support-turned-resistance around $22.0.
That could mean that, in the short-term at least, the sell-off might be over.
It’s always smart for crypto investors to hedge their bets, given the unpredictability of the market.
One excellent XRP (XRP) alternative that crypto investors should consider is a new coin being launched by Wall Street Memes, one of the
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