Despite a substantial rally, the Solana (SOL) price has steadied in the past five days after surging to nearly $47. However, the transfer of $65 million in $SOL tokens from FTX-owned wallets to exchanges has raised concerns about potential selling pressure.
SOL experienced an impressive 114% surge in just two weeks, commencing at $22 on October 16 and reaching a peak of $47 on October 30. Apart from recovering from the bear market, SOL’s uptrend was likely fueled by the development of its new Firedancer validator client.
Yet, a significant obstacle remains in the form of the looming potential sell-off from FTX’s substantial holdings. A report revealed that an FTX creditors group staked $122 million in $SOL in mid-October, aiming to earn nearly 7% in annualized yield, potentially resulting in an additional $8 million in $SOL tokens.
However, a recent move saw $67 million in $SOL unstaked and transferred to exchanges, with several million dollars’ worth of other $SOL tokens also making their way to exchanges in recent days.
Source: Trading View
Despite these activities, the $SOL price has not displayed significant adverse effects thus far. Given the previous rapid upward movement, a slowdown and retraction were expected. On shorter timeframes, the price experienced a bounce, retraced to $42.70, and has now returned to the 0.618 Fibonacci level, which has held. Depending on the extent of FTX’s potential sales, more sideways and upward price action may follow.
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.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
