Ten months after the devastating collapse of FTX, new developments from the bankrupt crypto exchange continue to haunt the crypto market.
Naturally, the market was thrown into a state of confusion as investors began to panic.
Such a sell-off was bound to have serious negative effects on the price of several cryptocurrencies, wasn't it?
However, according to recent reports, the company, FTX have gone as far as suing its former CEO, Sam Bankman-Fried's parents, in a bid to recover millions of dollars.
Here's how things unfolded.
As if the accusations against their son weren't enough, according to recent reports, FTX has filed a lawsuit against Sam Bankman-Fried's parents, Joseph and Barbara Bankman on several counts of fraud.
According to this filing from Monday this week, the crypto exchange sued the duo, in an effort to retrieve millions of dollars of "fraudulently transferred and misappropriated funds."
FTX claims that this lawsuit is a way to recover damages due to the aforementioned fraud, violations of fiduciary obligations, and other counts of misconduct.
According to the complaint, Bankman and Fried (SBF's parents) intentionally enriched themselves, both directly and indirectly, by siphoning millions of dollars at the expense of the debtors. FTX claims that they did this by abusing their access to FTX as a firm, as well as their influence as the CEO, Bankman-Fried's parents.
When FTX initially went under the water in November 2022, the price of SOL tumbled by more than 80% from about $40 to less than $10.
The court filing noted that out of the total $3.4 billion, FTX holds Solana worth a whopping $1.16 billion, bitcoin at $560 million, ether worth $192 million, and Aptos worth $137 million.
This meant that about one-third of all the crypto to be liquidated was SOL.
Naturally, the price of the cryptocurrency started to decline. This happened because investors started to panic about Solana's ability to stay afloat if an excess of $1 billion suddenly flowed into the market.
SOL's price would undoubtedly have gone under very quickly, and investors would have witnessed a replay of the initial FTX dip last year.
However, CoinMarketCap data shows that SOL is doing quite well in terms of price.
The cryptocurrency is up by about 1.04% over the last 24 hours and by almost 10% over the last seven days.
This shows incredible price strength on the part of the cryptocurrency.
According to data from Coinglass, Solana now has a long/short ratio of 1.04, indicating. This indicates that the buyers are overshadowing the sellers, and more investors are flocking towards Solana.
Crypto exchanges like Binance, dYdX, Bitget, BingX and ByBit are also seeing large inflows of Solana buyers, with BingX buyers taking a total of 56.29% over its sellers (43.71%).
At the time of writing, Solana is trading at $19.86 and is on the verge of breaking through the $20 zone.
After a steep decline from $32.13 in mid-July, Solana finally found support somewhere around $17.5.
The cryptocurrency has now rebounded off this level and is facing resistance somewhere around $20.
The RSI as well, has now trended towards the neutral zone, indicating the possibility of Solana's price going either way.
In all, the $20 zone is the resistance to watch.
If Solana rallies higher than $20 and closes above it with a daily candle, the cryptocurrency will now have everything it needs to rally further upwards to $25, and then further above $30.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.