Solana, like all crypto assets that are neither bitcoin nor ethereum, is sometimes underestimated. However, SOL has shown strong potential over the course of this year and several investors have come to view it as a possible rival to Ethereum. But just when everything seems to be going well, doubt looms: is the asset about to face selling pressure?
Crypto, pressure increases on Solana with the sales of FTX and Alameda
After a long period of decline, the crypto market is gradually returning to its glorious moments. And as usual, recovery means predictions and some see the explosion of Solana’s price. However, the instability of the sector is an essential point to take into account, especially when key factors are added.
According to data from Spot On Chain, the asset is approaching a potential inflection point. Indeed, the sales carried out by Alameda Research and FTX sow doubt and increase the selling pressure. Additionally, the possible inflow of $31.2 million in SOL worries analysts who are closely monitoring this value.
This increase is a real problem, since it can be an important factor in the price correction. It also presents a worrying divergence, as a golden cross recently appeared on Solana, suggesting a long-term rise.
Between rise and fall, what future for SOL?
The crypto ecosystem is unique in that nothing is frozen in time. Over time, investors rely on the analysis of key players in the sector to consider the future. However, everything does not always go as planned.
Indeed, most tokens lost more than half of their value last year before starting an upward trend again. Among the most notable covers, that of Solana. Indeed, Vitalik Buterin demonstrated that he was not wrong to bet on the asset when it was sinking.
SOL positioned itself as the most bullish crypto during the month of October. After the long-awaited recovery of bitcoin (BTC), most altcoins followed, including Solana, with a 50% rise. During this period, its market capitalization increased by $6 billion. Despite this feat, there is a high likelihood of selling pressure with trading volume declining while prices are rising.
Many investors see the value in Solana, that’s a fact. However, the crypto market is sometimes unforgiving. Despite the price hike, SOL’s $31.2 million influx raises questions. Taking these factors into account, the risk of correction cannot be ignored.
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