SOL Price Remains Stable Despite FTX Liquidation Rumors
The price of SOL, the smart contracts token, has shown resilience in the face of rumors surrounding a potential massive liquidation by bankrupt exchange FTX. Concerns were raised that the court-approved sale of FTX’s crypto holdings, which includes a significant amount of Solana, would cause a significant drop in price. However, FTX has clarified that it plans to sell $100 million worth of SOL every week, with the possibility of increasing this amount in the future. As a result, SOL price has seen a 5% increase to $18.85, suggesting that it may have bottomed out and is poised for a rally.
Potential Uptrend for SOL
The support at $17.5 for SOL seems strong enough to maintain an uptrend, as indicated by the lower ascending trendline. Traders should look out for buy signals from indicators such as the Moving Average Convergence Divergence (MACD) and Supertrend to confirm the forming uptrend. A break above the upper ascending trendline would signal further gains above $20.
Caution Advised for Traders
While there has been a 5% increase in SOL price, caution is still advised as there is no guarantee that the price won’t roll back and weaken support at $17.5. If panic selling occurs, SOL price could experience an extended downtrend towards $13.5 and $10. Traders should closely monitor the MACD and other indicators for confirmation of a sustained uptrend.
Potential Bullish Comeback for SOL
The four-hour chart shows a stronger bullish comeback for SOL, supported by a buy signal from the MACD. The 50-day Exponential Moving Average (EMA) also suggests a solidified uptrend. If SOL can maintain support at $17.5 and close the gap to $20, it may attract more traders as a favorable investment. A V-shaped recovery with a target of $20.5 and a 61.8% retracement from the dip to $17.5 could push the price higher, potentially reaching the next major resistance at $25.
Hot Take: SOL Price Resilient in Face of FTX Liquidation Rumors
Despite rumors of a potential massive liquidation by FTX, SOL price has remained stable and even experienced a 5% increase. FTX’s planned structured process for selling its SOL holdings has alleviated concerns among investors. The current uptrend, supported by indicators such as the MACD and Supertrend, suggests that SOL may be on track for further gains. However, caution is advised as there is still a possibility of a price rollback and weakened support levels. Traders should closely monitor indicators for confirmation of sustained upward movement in SOL price.
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