Solana Price Crashes Below $160 Amid Revelations Of FTX’s Hidden SOL Stash

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As a seasoned crypto investor with battle-scarred fingers from navigating the volatile crypto market, I must admit that the latest news about FTX and its alleged Solana stash has sent shivers down my spine. I’ve seen market manipulation before, but this is on another level.

The recent shocking disclosures about the failure of crypto exchange FTX have caused turbulence in the value of Solana. A whistleblower, said to possess insider information about FTX’s activities, alleges that the collapsed firm might be hiding a substantial amount of Solana tokens – as much as 8% of the total SOL circulation.

Triggering Fears Of Massive Sell-Off

If these claims are accurate, it’s roughly equivalent to around 46.5 million SOL tokens, which have a total value of approximately $7 billion given the current market price of $155 per token.

A user on platform X, going by the name Wise Advice, cautioned that while it’s not certain Solana will reach zero, if FTX indeed begins to sell its tokens openly due to this recent news, it could cause a substantial drop in Solana’s price.

Following the announcement, Solana’s price fell beneath the crucial $160 support threshold, decreasing by more than 9% over the last fortnight and approximately 4% within the previous 24 hours, as whispers about FTX’s hidden SOL holdings spread.

Solana Price Risks Freefall

As a researcher, I’m sharing new insights following recent events. It’s important to note that these developments are in the wake of the FTX estate selling off discounted Solana (SOL) tokens, approximately two months ago, as part of efforts to settle debts owed to creditors impacted by the exchange’s downfall. At that time, Bitcoinist reported that the estate liquidated a staggering $2.6 billion worth of SOL at roughly $102 per token.

Investment companies such as Pantera Capital and Figure Markets purchased significant amounts of the reduced Solana (SOL) distribution. It’s important to mention that these tokens are tied to a long-term vesting schedule, which means they won’t have a significant immediate influence on Solana’s market trends over the next few years.

Conversely, if the rumored secret FTX reserve is validated, it might outshine the effects of these transactions and potentially create a significant hurdle for the short-term value of Solana.

As a researcher delving into the world of Solana, I ponder over the prospect of approximately $7 billion worth of Solana tokens potentially entering the market. This influx might trigger significant selling pressure, which could potentially weaken its optimistic price trajectory and cast doubts on its bullish outlook.

It’s essential to clarify that these are just rumors, as there’s no official confirmation from the bankrupt exchange regarding them. No additional details have been disclosed about the potential sale of these tokens to settle debts, should the rumors be true.

Potential $140s Plunge

According to crypto expert Pratty Crypto, there are various technical indicators suggesting that the cryptocurrency might experience a continued drop in the near future.

According to Pratty Crypto’s analysis, Solana might be headed towards the $140 area due to several converging factors. These include Solana being priced lower than the midpoint of its performance during the last quarter, touching a significant opening level for this quarter, and retracing approximately 62% of its recent price surge.

Moreover, Pratty Crypto advises that as Solana’s price approaches the range of $130 to $150, there’s a decreasing likelihood of maintaining its position. This could result in larger losses due to potential sell-offs.

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2024-08-03 09:40