Can Solana (SOL) Bulls Brush Off the Incoming FTX Selling Pressure? Report

The post Can Solana (SOL) Bulls Brush Off the Incoming FTX Selling Pressure? Report appeared first on Coinpedia Fintech News

Solana (SOL), a fast-growing top-tier layer one (L1) blockchain, has been at the center of real-world assets (RWA) tokenization. The smart-contract-enabled chain has, as a result, attracted significant investments from institutional investors seeking to tap into the Web3 space. Consequently, the SOL price has risen for the past twelve months, trading at about $159 on Wednesday during the early Asian session. 

FTX Sales Weigh Down on Solana Bullish Sentiments 

Last month, FTX began selling its $7.5 billion stash of staked Solana away from its traditional liquidation process. With former FTX boss Sam Bankman-fried (SBF) jailed for 25 years and ordered to pay the damages, current FTX officials have been working on repaying creditors and customers. 

In the latest round, FTX is working with Figure Markets, actively participating in the Solana auctions, and setting up a Special Purpose Vehicle (SPV) to allow both non-U.S. investors and accredited U.S. investors to participate in the SOL auction. 

Despite the negative sentiments from FTX estate and the recent Solana network congestion and outage, core developers have been working on necessary solutions to enable mass web3 adoption. Furthermore, the Solana network has facilitated over $22 billion in bridged TVL and has more than $3.2 billion in stablecoins market cap.

What Next for SOL Price?

As with most altcoins, Solana’s price has been trapped in a short-term correction after an impressive rally in the first quarter of 2024. Notably, Solana’s price closed last week on a bullish Doji candlestick, and the bulls have been attempting to initiate a rally toward an all-time high.

From a technical standpoint, the SOL price against the US dollar on a daily basis has to consistently close above the support/resistance level of around $169. Additionally, the SOL price must close above the daily 50 Moving Average (MA) and the 50 level of the Relative Strength Index (RSI) to validate a bullish revival.