Solana: Ghosts of FTX lurk despite positive trends

• $30 million worth of SOL hit exchanges from FTX.
• Market cap and volume have declined in the last 24 hours.

Solana [SOL] continues to be associated with the FTX label, and even as it experiences positive trends, it struggles to detach from this connection. The recent actions of certain FTX wallets have reignited discussions about the relationship between FTX and Solana.

FTX resumes Solana sales

A tweet by Lookonchain on the 6th of November revealed that FTX has proceeded with the sale of its Solana assets. Moreover, an address associated with FTX unstaked 3.96 million SOL a few days ago. 

FTX unstaked 3.96M $SOL($160M) 2 days ago and transferred 750K $SOL($30M) to #Binance and #Kraken 4 hours ago.https://t.co/A4CyCXgVzShttps://t.co/92ItXxxoB4 pic.twitter.com/4gxmwxzdIL

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— Lookonchain (@lookonchain) November 6, 2023

This address had also transferred 750,000 SOL to the Binance and Kraken exchanges for sale on the 6th of November, the total value of which amounted to approximately $30 million.

These actions were anticipated, as the troubled exchange had received approval to liquidate its assets.

Volume and market cap take a hit

AMBCrypto’s examination of Solana’s volume and market capitalization over the past 24 hours revealed a noticeable decline. At the time of this report, the market capitalization of SOL had decreased by more than 3%, per CoinMarketCap.

This decline could be attributed to the recent drop in SOL’s value over the last 48 hours. 

Additionally, the trading volume had fallen by over 8% at the time of this report. This indicated that the number of trades occurring at this moment had decreased compared to the previous trading session.

Furthermore, the prevailing trading volume was predominantly characterized by selling pressure.

Solana starting the week without a bang.

A review of Solana’s daily timeframe chart indicated that it has experienced a nearly 4% loss in value over the past 48 hours. At the time of writing, it was trading at a loss of over 1.7%, with a price of approximately $40.4.

Realistic or not, here’s SOL’s market cap in BTC’s terms

This decline came on the heels of a nearly 3% loss in value during the previous trading session. It remains uncertain whether the FTX-related actions played a role, as Solana has been residing in the overbought territory for a significant period.

Lastly, the Relative Strength Index (RSI) line remained above the 70 threshold at press time. The direction of the trend in the coming days will determine whether this is a price correction or a downtrend influenced by FTX.