Solana (SOL) is facing downward price pressure as FTX and Alameda proceed with the liquidation of SOL tokens valued in millions.
A wallet associated with the cryptocurrency exchange FTX moved $10 million worth of Solana (SOL) tokens on a Wednesday. This is part of their strategy to liquidate the cryptocurrency assets held by FTX and Alameda Research in order to repay creditors.
Back in September, FTX and Alameda were issued a court order to liquidate crypto assets totaling $3.4 billion. To minimize the impact on prices, they decided to gradually sell off these crypto assets.
FTX Transfers Solana (SOL) to Binance
On October 28, PackShieldAlert reported that an FTX-associated wallet transferred 309.2k SOL tokens, valued at over $9.9 million. Additionally, nearly 244k SOL tokens were sent to the crypto exchange Binance.
This move occurred while the price of Solana had surged by 70% in October, allowing FTX Debtors to sell more of their SOL holdings. Sam Bankman-Fried, the former FTX CEO, informed the jury that he began buying Solana when its price was just $0.20.
According to data from Spot On Chain, FTX and Alameda Research still possess EVM assets amounting to $736 million, despite recent deposits to various crypto exchanges in the past few days.
In September, a Delaware Bankruptcy Court approved a plan for FTX Debtors to liquidate crypto assets worth $3.1 billion held at FTX and Alameda Research.
Solana (SOL) Price Declines Due to Liquidations
Over the last 24 hours, the price of Solana (SOL) has fallen by more than 2%, and it’s now trading at $31.60. The lowest price during this period was $31.53, while the highest was $33.30. Additionally, trading volume has decreased by 25% in the past 24 hours, suggesting that trader interest has waned.
Analysts are anticipating that Solana might temporarily pull back to find new buyers before potentially surging to $40. This optimistic outlook is based on the presence of double golden cross patterns.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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