ETF Euphoria and Altcoin Gains
If you have been following the crypto market, you may have noticed that the recent surge in ETF euphoria has led to free altcoin gains while keeping bitcoin prices steady. While this surge is exciting, it’s essential to be cautious as there may be a surprise correction on the horizon. One of the most significant stories in the past few days has been the surprise 25% rally in Solana (SOL) pricing before the weekend. SOL has now become one of the most desired institutional investments, potentially explaining its recent surge.
What’s Behind SOL Prices Soaring?
In recent weeks, Solana has emerged as the leading primary cryptocurrency, experiencing a remarkable 150% surge in price over the past month. However, the token’s rally appears to have paused as wallets associated with the bankrupt FTX exchange, holding millions in SOL, continue to move funds. According to on-chain analysis tool PeckShield, these FTX-related addresses transferred significant amounts of SOL and USDT stablecoins to exchanges like Binance and Wintermute, potentially signaling a plan to sell the tokens on the open market.
FTX has deposited $24M worth of assets to Kraken and OKX in the past 5 hours, including 250K SOL ($13.5M), 8.27M MATIC ($7.41M), and 1,500 ETH ($3.1M). As of Nov 14, FTX and Alameda have transferred $438M worth of 42 assets to exchanges. It looks like something is brewing within FTX.
SOL Faces a Downturn Amidst Gains
As a result of these movements, SOL prices saw a 7.5% drop in the last 24 hours, outperforming other tracked cryptocurrencies which experienced an average loss of 0.6%. Despite this recent downturn, SOL has surged by 150% in the past month and over 500% year-to-date due to enthusiasm surrounding its blockchain technology.
Can $SOL Reach $100?
The debtor group’s intentions remain unclear regarding its substantial SOL holdings estimated at over $1 billion acquired during 2020-2022. Although some SOL holdings were liquidated by unstaking approximately $67 million, the movement of more than $100 million worth of SOL to exchanges has influenced SOL’s impressive price rally amidst ongoing uncertainty about the debtor group’s plans.
Solana faced resistance at $64, signaling a potential downtrend with a continued decline toward $41 if bears breach moving average lines. Right now, Solana is aiming for its earlier high near $46.77.
Hot Take: The Volatility of Solana’s Price
The recent surge in Solana’s price has been fueled by institutional interest and enthusiasm surrounding its technology; however, movements of substantial amounts of SOL by wallets associated with bankrupt exchanges have caused a recent downturn in price performance. The uncertainty surrounding these movements and their impact on SOL’s price creates volatility that traders should monitor closely as they navigate this rapidly evolving market landscape.
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