Is Solana (SOL) about to go higher in spite of FTX selling pressure?

Is Solana (SOL) about to go higher in spite of FTX selling pressure?

The Solana (SOL) price appears to have gathered itself over the last five days following a massive surge to nearly $47. However, a further $65 million in $SOL tokens has been transferred to exchanges from FTX-owned wallets.

$SOL rallied an eye-watering 114% in only two weeks, beginning at $22 on 16 October, and wicking up to $47 on 30 October. Besides being beaten down so badly over the course of the last bear market, $SOL also probably took a lot of impetus from the development of its new Firedancer validator client.

Be that as it may, there is a nasty headwind that $SOL still needs to deal with, in the form of the overhanging potential sell pressure from the large FTX holdings. 

According to a report for Coindesk, an FTX creditors group staked $122 million in $SOL in mid October, purportedly in order to earn nearly 7% annualised in yield, potentially fetching a further $8 million in $SOL tokens.

Notwithstanding, $67 million in $SOL was recently unstaked and moved to exchanges, with millions of dollars of other $SOL tokens also having been sent to exchanges in recent days.

Source: Trading View

Despite this activity, the $SOL price does not appear to have been greatly affected thus far. There had to be a slow down and a retrace given the previous violent move to the upside, therefore, on the short term time frame the price bounced, came back to $42.70, and now has come back to the 0.618 fibonacci which has held. More sideways and upwards price action could follow, depending obviously on how much $SOL could be sold by FTX.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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