Anxiety Rises in Crypto Market as FTX Bankruptcy Proceeds
FTX’s bankruptcy case has created a sense of unease in the crypto market, causing a 7% drop in the price of Solana (SOL) due to rumors. FTX is set to appear in Delaware Bankruptcy Court to seek approval for the liquidation of $3.4 billion in crypto assets, including SOL, FTT, BTC, ETH, and others.
The Solana Situation
Solana, FTX’s largest holding, experienced a significant price decline due to rumors of a massive dump by FTX. However, these rumors lack substance. The SOL tokens held by FTX debtors are not available for sale; they are under a lockup agreement. FTX and Alameda acquired 16% of the SOL supply directly from the Solana Foundation, and these tokens are bound by the agreement.
These SOL tokens will undergo a linear vesting process until January 2028, with monthly unlocks. Fear of an imminent SOL dump by FTX is misinformation.
SOL/USD 1-Day
Yesterday’s 7% price drop in Solana may have been an overreaction to the rumors. The technical chart indicates that SOL is still vulnerable to a correction lower to the 61.8% Fibonacci retracement level at $17.39. Price recovery can be expected at this level, and a rise above the 20-day EMA would be crucial for bullish momentum.
Hot Take: Rumors of SOL Dump by FTX Unfounded
The rumors of FTX planning a massive dump of SOL tokens have caused panic in the market, leading to a price decline. However, these rumors are unfounded. The SOL tokens held by FTX debtors are locked up and will undergo a linear vesting process until 2028. Any fear, uncertainty, and doubt (FUD) surrounding an imminent dump can be dismissed as misinformation. The market should focus on the actual facts and technical indicators to make informed decisions about Solana’s future price movements.
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