- Over $685 million of FTX’s crypto reserves are in SOL as of statistics from Jan 17.
- The SOL price recently broke the key support level of $19.
The cryptocurrency market has taken a hit recently with the majority of cryptocurrencies facing severe downtrend, and there are rumors that defunct crypto exchange FTX is planning to sell a large percentage of its assets.
FTX is reportedly seeking permission from the court to liquidate its $3.4 billion worth of cryptocurrency holdings, including SOL and other cryptocurrencies. Around 4% of Solana’s (SOL) value has been wiped out in the previous day. According to the reserve statistics from January 17th, over $685 million of FTX’s crypto reserves are in SOL.
If the court grants FTX’s request, the company will be able to sell all of its SOL holdings as per claims. However, the SOL held by FTX borrowers cannot be sold right away, which is a point that is being neglected. These SOL assets are locked down due to a lock-up agreement, despite what the claims seem to suggest.
Struggle Continues
As per data from CMC (NS:CMC), the price of SOL is trading at $17.73, down 3.64% in the last 24 hours. Moreover, it is down 28% in the last 30 days. The price recently broke the key support level of $19. It is likely heading towards the next support level of $14.5.
Source: CoinMarketCap
Solana’s DeFi ecosystem is also exhibiting signs of stress, with declining liquidity and trade volumes. In conclusion, Solana is engulfed in a vortex of pessimistic emotion, and the evidence indicates additional declines ahead. All indicators suggest a possible decline. Recent developments haven’t prevented SOL from feeling the effects of its connection to FTX.
