- Several FTX-affiliated projects like Genesis and other Wall Street/Silicon Valley companies continue to feel the effects of FTX’s meltdown and subsequent crashes.
- Solana’s most recent decline came hand-in-hand with the FTX collapse.
- According to Santiment, there are still not many believers in Solana.
Is this a good time for Solana? Following the crash and burn of FTX, the direction of the general cryptocurrency market has continued to decline, leaving fear, uncertainty, and doubt amongst institutional and retail investors alike.
Several FTX-affiliated projects, like Genesis and other Wall Street/Silicon Valley companies, continue to feel the effects of FTX’s meltdown and subsequent crashes. Many more crypto and blockchain projects related to the crypto exchange before its crash are expected to implode at any minute as the ripple effects of the FTX crash continue to spread out.
Speaking of ripple effects, however, several altcoins also felt the brunt of the now-defunct crypto exchange’s crash. Some of these altcoins include FTX’s native cryptocurrency (FTT) and Solana, another Bankman-Fried affiliated cryptocurrency.
Solana’s most recent decline came hand-in-hand with the FTX collapse. A few days after FTX filed for Chapter 11 bankruptcy protection, on 14 November, the spotlight hit the Solana Foundation’s exposure to the defunct exchange, which included almost $1 million in cash or cash equivalents on FTX.com as of 6 November.
At the beginning of the crash, Solana was close to the $40 mark. However, over the last three weeks, the cryptocurrency crashed heavily and traded below the $15 mark.
At the time of writing, the cryptocurrency trades at $13.10 after hitting an $11.02 low and rebounding by 15% over the last day.
Rebound Could Continue Until Bears Slow Down
According to a tweet from the blockchain data and cryptocurrency monitoring platform, Santiment, there are still not many believers in Solana. Santiment says this is the case, despite the cryptocurrency’s rebound over the last 24 hours, from its $11.02 low to the $13 mark where it now sits.
😒 There are not a lot of big #Solana believers, even as its price bottomed out at $11.02 and rebounded to $12.70 over the past 15 hours. This #FUD could cause more rebounding until traders slow down their nearly unanimous bets against $SOL's price. https://t.co/e2jSAmLEqf pic.twitter.com/1qisr8inaj
— Santiment (@santimentfeed) November 23, 2022
As many traders and investors know, the crypto market tends to move opposite to what the general public expects. If the larger part of traders and investors believe a certain asset will go up, it will likely come down and vice versa.
The data-aggregation platform notes that the Fear, Uncertainty, and Doubt (FUD) on Solana (and the general crypto market) could cause more rebounding until traders slow down in their “nearly unanimous” bets against the cryptocurrency.
According to the appended chart on Santiment’s tweet, Solana has seen massive shorts on Binance, as the cryptocurrency’s price dropped by 63% over the last four days.
Solana (SOL) Price Analysis
In the charts today, Solana appears bullish compared to the price conditions at the beginning of the week. The bulls have retaken control of the Solana market and have pushed the price of the cryptocurrency upwards, over the $13 zone.
Solana’s price jumped to where it now sits after plunging to the $11.50 level this week.
SOL is currently trading at $13.2 and has risen by as much as 15% over the last day, with $687,181,774 in trading volume and a 14.8% rise in its market cap to $4,780,061,850 at the time of writing.
The volatility of the Solana market has improved as a result. Solana is now reaching the $13.7 resistance, around the upper limit of its Bollinger band on the 4-hour chart. On the other hand, the lower Bollinger band sits at $11.62, around when the price of the cryptocurrency rebounded.
The histogram on the MACD shows that bullish momentum is returning to the market but may still be weak, according to its height.
Overall, the MACD shows a bullish crossover on the 4-hour chart, indicating that the bulls may be trying very hard to take control after all.
Overall, the $13.7 zone is important to watch because the bears are likely to wait for the bulls, and the price of the cryptocurrency may experience a slight downturn as the big-players attempt to collect liquidity on unsuspecting traders.
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.