Solana’s value has experienced a significant decline over the past seven days, dropping by over 7.5%. This decline has been fueled by concerns within the market that the now-insolvent crypto exchange FTX might initiate substantial liquidations of Solana and other related crypto assets associated with the Solana blockchain. However, it’s important to note that the likelihood of FTX offloading all of its holdings at once appears to be low. The prospect of liquidators potentially releasing $128 million worth of SOL tokens, along with hundreds of millions worth of other Solana-affiliated tokens, onto the market has not instilled much confidence in market participants.
At the time of writing, Solana was trading at $18.71.
Solana witnessed a sharp rally from $12.8 to $32.13. However, the bulls failed to manage their grip on the asset as the prices faced stiff resistance around the crucial level of $27.5 and did not give a daily closing above that. Post this move, Sol corrected almost 46% and dropped to $17.33. Currently, the asset is trying to take support around $17 ( Horizontal Trendline & 78.6% Fibonacci Retracement Level). If it holds and sustains above the support then we can expect some relief rally whereas a break below $17 will lead to further downfall.
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