- Solana experiences a sharp 21% price drop amid FTX estate sales, with 1.8 million SOL tokens sold for $232 million in the second round auction.
- Despite the downturn, Figure Markets CEO confirms participation in the third round auction, while technical indicators suggest potential for bullish reversal in SOL’s price.
Solana (SOL) investors are in for a rollercoaster ride as the cryptocurrency experiences a significant price slump amidst the ongoing FTX estate sales. With the conclusion of the second round auction, where 1.8 million SOL tokens were sold for approximately $232 million, the market is now bracing for round three.
FTX Estate’s Multi-Million Dollar Sales
In the recent auction, Galaxy Trading and Pantera Capital were notable participants, acquiring tokens subjected to a four-year vesting schedule. The auction saw bids ranging from $85 to $110 per token, with successful bids largely falling above $95. However, despite the significant sale, Solana’s price witnessed a sharp decline, down nearly 5% in the past 24 hours and over 20% in the last week.
Figure Markets CEO Confirms Participation
As the third round of FTX estate sales kicks off, Figure Markets CEO Mike Cagney has confirmed the firm’s involvement. They are already preparing a special purpose vehicle to facilitate bids, targeting both non-US and accredited US investors.
Price Analysis and Investor Strategy
While Solana’s price may be in a downtrend, technical indicators suggest a potential bullish reversal. The Relative Strength Index (RSI) remains above the mean level of 50, indicating ongoing bullish sentiment. Traders considering short positions should watch for a decisive close of the RSI below this level. Conversely, those eyeing long positions should wait for a candlestick close above the neckline of the rounding bottom pattern, currently at $126.86.
What’s Next for SOL Investors?
The ongoing FTX estate sales may continue to influence Solana’s price in the short term. However, the long-term prospects remain promising, especially with continued interest from institutional investors like Galaxy Trading and Pantera Capital. As Figure Markets CEO Mike Cagney joins the fray, the third round of sales could introduce new dynamics to the market.
Solana’s recent price slump amidst FTX estate sales highlights the volatility inherent in the cryptocurrency market. While short-term fluctuations may concern investors, the underlying bullish sentiment, coupled with institutional interest, suggests potential for recovery. As the third round of sales progresses, SOL investors must stay vigilant and adapt their strategies accordingly to navigate the market’s twists and turns.
