The Solana (SOL) price appears to have gathered itself over the last five days following a massive surge to nearly $47. However, a further $65 million in $SOL tokens has been transferred to exchanges from FTX-owned wallets.
$SOL rallied an eye-watering 114% in only two weeks, beginning at $22 on 16 October, and wicking up to $47 on 30 October. Besides being beaten down so badly over the course of the last bear market, $SOL also probably took a lot of impetus from the development of its new Firedancer validator client.
Be that as it may, there is a nasty headwind that $SOL still needs to deal with, in the form of the overhanging potential sell pressure from the large FTX holdings.
According to a report for Coindesk, an FTX creditors group staked $122 million in $SOL in mid October, purportedly in order to earn nearly 7% annualised in yield, potentially fetching a further $8 million in $SOL tokens.
Notwithstanding, $67 million in $SOL was recently unstaked and moved to exchanges, with millions of dollars of other $SOL tokens also having been sent to exchanges in recent days.
Source: Trading View
Despite this activity, the $SOL price does not appear to have been greatly affected thus far. There had to be a slow down and a retrace given the previous violent move to the upside, therefore, on the short term time frame the price bounced, came back to $42.70, and now has come back to the 0.618 fibonacci which has held. More sideways and upwards price action could follow, depending obviously on how much $SOL could be sold by FTX.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2023/11/is-solana-sol-about-to-go-higher-in-spite-of-ftx-selling-pressure