Solana Price Prediction as SOL Dips Following Court Approves FTX’s Request to Liquidate Crypto Holdings
Solana (SOL), the cryptocurrency that powers the layer-1 smart-contract-enabled Solana blockchain, has dipped around 2% in the last half an hour, and was last trading around $18.10, down close to 2.5% from earlier session highs in the $18.50s.
Weighing on SOL was the news that a court presiding over the FTX bankruptcy case has just permitted the bankrupt exchange to begin liquidating its more than $3.4 billion in digital asset holdings.
While the sales won’t occur in one large dump, with FTX to sell opportunistically over the coming months, it still means heightened sell pressure for the crypto market in the near future.
Sell pressures are particularly acute for Solana (SOL), given FTX’s large holdings of $1.16 billion of the cryptocurrency, which amounts to around 16% of the token’s outstanding supply.
Solana is down nearly 8% since Sunday, when jitters surrounding possible FTX sales first arose.
News of the court’s approval of FTX’s request to begin liquidating its crypto (and Solana) holdings is likely to mean that Solana (SOL) remains stuck within its bearish trend, in the short-term at least.
Solana has been heading lower in a downtrend since mid-August’s highs in the $25 area and has since dropped below all of its major moving averages, which have now flipped to offering strong resistance, a bearish sign.
A return to the June lows around $13 remains a strong possibility, with these lows hit back in June when the US SEC first officially labeled SOL as an unregistered security.
This could present a good dip-buying opportunity for long-term Solana bulls.
After all, unlike the SEC’s labeling of SOL as an unregistered security, which has direct implications for the cryptocurrency's potential adoption in the US, sales by FTX do
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