- SOL was up by more than 23% over the last seven days.
- Metrics looked bullish on SOL, but market indicators told a different story.
Solana [SOL] displayed an impressive performance as its price rallied in double digits in the last few days. Though the uptrend gave investors confidence, the scenario might not take long to change, especially if recent developers are to be considered.
Read Solana’s [SOL] Price Prediction 2023-24
Notably, infamous crypto exchange FTX might make a move that can turn the tides against Solana’s favor.
Solana shows promise
Solana’s price surged by more than 23% over the last seven days, showing potential. Moreover, according to CoinMarketCap, in the last 24 hours alone, the token’s price went up by over 6%.
At the time of writing, SOL was trading at $38.16 with a market capitalization of more than $16 billion, making it the seventh-largest crypto. The price uptrend was also accompanied by a rise in the token’s trading volume.
But despite the bullish momentum, Nansen’s latest tweet signaled trouble brewing on the horizon for SOL. Particularly, FTX had started to unstake SOL tokens worth millions of dollars.
If the exchange decides to sell those tokens, we can expect SOL’s liquidity to go up, which might be followed by a price correction.
An additional 1.6M SOL ($57.6M) started the process of unstaking yesterday
The address: 9uyDy9VDBw4K7xoSkhmCAm8NAFCwu4pkF6JeHUCtVKcX
At the time of writing these funds haven't left the wallet, but if they do that will bring the total of SOL moved by FTX to just under $90M pic.twitter.com/bTSYjSxI6p
— Nansen 🧭 (@nansen_ai) October 31, 2023
An additional 1.6 million SOL, worth more than $57 million, started the process of unstaking on 31 October. Amidst this, the market’s confidence in SOL also seemed to have dwindled, which could also increase the chances of a price correction in the days to follow.
LunarCrush’s data revealed that SOL’s social engagement had dropped along with its bullish sentiment. Another bearish signal was Solana’s AltRank, which went up, increasing the chances of a price downtrend.
Source: LunarCrush
Going forward
Regardless of the darkening skies, SOL’s position seemed relatively stable at press time. This was evident from the fact that SOL’s Binance Funding Rate was green. This meant that derivatives investors were buying Solana at its higher price.
Its Open Interest and Price Volatility 1w also increased during this time.
Source: Santiment
Is your portfolio green? Check out the SOL Profit Calculator
However, other concerns reared their head at the time of writing; both the Money Flow Index (MFI) and Relative Strength Index (RSI) entered overbought zones at press time. This indicated rising selling pressure on the token.
But SOL’s MACD continued to support the buyers as it displayed a bullish crossover.
Source: TradingView
