FTX Crash Triggers Major Selloff In Solana Price – How Deep Will SOL Dive?

Christian Encila

2 years ago

2 mins read

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Solana (SOL), post-FTX life, has been very rough. On a monthly and biweekly time frame, CoinGecko data shows bearishness, while daily and weekly time frames show modest appreciation.

What this proves is that the wounds left by the demise of FTX have not been healed by Solana’s native token.

Ever since FTX collapsed, SOL has been losing a huge amount energy.

As bearish signals continue to emerge from technical analysis, the price decrease is likely to continue.

It’s possible that prices will fall down below the 61.80 Fibonacci level, which is now at $12.58.

This may be because Alameda Research, FTX’s sibling in the business, had a significant role in the Solana ICO.

Investor trust plummeted as concerns about Solana’s close ties to SBF and his company developed in the wake of the failing exchange’s holding of almost a billion in SOL.

Is The Star Just Fading Or Dying?

SOL was the poster child of DeFi in that side of the crypto industry. As of writing, the token is trading at a red candle at $13.55, a staggering 62.2% decrease in value from its $36.83 price pre-FTX.

However, Solana’s prospects are bleak even before the crash. Messari’s Q3 report on Solana reveals that only certain ecosystem components, such as NFTs, have truly stabilized and even flourished.

Chart: TradingView

However, the token’s technical aspects show potential. The RSI readings are oversold, while the metric is slowly gaining pace. This is backed by a favorable increase in the CMF index.

However, this occurs on a daily basis. In the 4-hour time frame, it created a triangle that is, to say the least, bearish.

With a Pearson’s R score of 0.7, the regression channel confirms a further downward push, indicating that a downtrend is more likely than an uptrend.

The narrow BB channel is likewise extremely bearish. Not to mention the resistance posed by the center band.

Anxiety Pervading In Solana’s Ecosystem?

FUD (fear, uncertainty and doubt) is prevalent in this case.

The market is dominated by fear and a negative market mood as a result of Solana’s tight relations to FTX.

The 4-hour timeline provides insight about SOL’s future course. The $13.07 is a vital support zone for SOL to stay out of extinction.

If the indicated support is breached by the bears, a plunge below the 61.80 Fibonacci level is not out of the question.

SOL total market cap at $4.9 billion on the weekend chart | Featured image from Business 2 Community, Chart: TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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