Stable performance in the crypto market over the past 24 hours. But Solana is again down 3.5% and is now trading around $13.70. The downward trend is therefore still intact. Selling has been massive in recent days after FTX crashed. The momentum is strongly bearish on Solana. Now, the price might fall below $10 in due course. Should you sell SOL now or go for a turnaround? Our Solana price predictions:
Solana Crash After FTX Disaster: But Solana Isn’t FTX
First, it is necessary to examine the causes of the massive crash of Solana which took the former top 10 coin by more than 55% of its market capitalization in the last month. Solana (SOL) is trading 95% below the ATH – the discount is more than severe for invested investors. The coin, formerly marketed as an Ethereum killer, is selling massively. However, it should be kept in mind that Solana is not the same as FTX.
In the short term, however, the sale of Solana seems justified. Indeed, the downward pressure from the necessary liquidation of SOL at Alameda Research led to a large flight of capital from the Solana network, of which TVL collapsed by more than half. The tangles between SBF, FTX, Alameda Research and Solana were too strong.
So there are fundamental problems. But that was also the case with other cryptocurrencies, as one Twitter user attractively points out. A reversal does not seem out of the question, although confidence has been massively damaged at the moment.
Binance stops USDT (SOL) and USDC (SOL) deposits
Binance, the trading exchange with the highest turnover, announced yesterday Thursday the cessation of USDT and USDC (SOL) deposits. After the freezing of deposits of stablecoins based on the Solana network, there was another price drop. Connections to FTX are increasingly costing Solana trust. Binance did not provide a more detailed explanation of the measure. Other major exchanges such as OKX and Bybit have followed suit.
The difficult case of Solana (SOL)
Solana is an up-and-coming layer 1 blockchain that wanted to disrupt the blockchain world with built-in proof of history and specifically attack the market-leading layer 1 Ethereum. But its close ties to SBF and the insolvent FTX exchange propelled Solana into a significant downtrend. The Solana collapse occurred correspondingly with the FTX token, albeit on a slightly smaller scale.
Does Solana fall below $10 now?
The downside momentum remains strong. However, Solana was able to stabilize in a support zone at $13.5 on the hourly chart. If the bears cause the price to drop below this support, Solana’s price is likely to fall to $12.40 in the near future.
The long-term daily chart also gives no hope of an imminent trend reversal. A short-term counter move could be indicated due to an oversold condition with an RSI of 23. The high selling volume continues to look bearish.
Trade Solana now for free
Solana Suffers After FTX Crash: This Presale Could Benefit Massively
Although Solana came under heavy pressure following FTX’s bankruptcy, the coin also has a downside. In addition to the Trust Wallet Token (TWT), probably one of the big winners of the current crisis, Dash 2 Trade could benefit from it as a new currency in the medium term. Because with Dash 2 Trade, crypto investors could satisfy the increased security awareness that results from the ubiquitous medium-term risks. In order to avoid total crypto losses à la Terra (LUNA) or FTX (FTT), a well-founded analysis is necessary – of course, the risks still remain, but can be reduced.
Dash 2 Trade aims to create a versatile AI trading platform with comprehensive information at its disposal. Thus, Dash 2 Trade might enter a widening gap due to the FTX crash. In the presale, investors currently still have the opportunity to participate at an early stage of development.
Now let’s move on to Dash 2 trading
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