Solana (SOL) is at risk of a significant 12% price drop as the bankrupt crypto exchange FTX prepares to offload its remaining SOL holdings. The liquidation, part of FTX’s ongoing bankruptcy proceedings, could put downward pressure on Solana’s price, with the potential to increase supply in the market and trigger selling activity.
FTX, which once held substantial reserves of SOL, is seeking to liquidate assets to repay creditors, and the sale of its Solana holdings has sparked concerns among investors. SOL’s price has already been volatile in recent weeks, and this news adds further uncertainty to the market, as traders brace for the potential sell-off.
Source – FXStreet
The prospect of FTX selling large volumes of SOL comes at a time when Solana has been gaining traction in the decentralized finance (DeFi) and NFT sectors, with some viewing the current situation as a temporary setback. However, the increased supply from FTX’s liquidation could weigh on prices in the short term, making it difficult for Solana to maintain its recent gains.
As FTX’s liquidation progresses, traders will be watching closely to see how the market absorbs the additional supply. While long-term prospects for Solana remain strong, driven by its technological advancements, short-term risks could lead to a pullback before any recovery takes place.
