SOL Price Takes a Hit with a 7% Decline Amidst FTX Cold Wallet Transfers – What to Expect Next?

Crypto News- In the midst of a relatively calm phase in the broader cryptocurrency market, Solana (SOL), a key Ethereum Layer-1 competitor, is currently navigating a significant price adjustment. At the latest check, the Solana (SOL) price has taken a 7% dip, settling at $60.32, with a market capitalization of $25.5 billion.

So, why the downturn in Solana’s price?

Solana recently experienced a substantial surge in its price, propelling it to the position of the sixth-largest cryptocurrency by market cap. The present decline in SOL’s price coincides with a substantial transfer occurring via an FTX cold wallet.

SOL Price Takes a Hit with a 7% Decline Amidst FTX Cold Wallet Transfers – What to Expect Next?

According to Lookonchain’s recent report, an address closely associated with the FTX cold wallet, identified as 4Axqyo…HswTAh, unstaked a substantial amount of 1.5 million SOL (equivalent to about $90 million) at 7:55 UTC+8.

The entire unstaked sum was subsequently moved to the address 3vxheE5…5mgkom. Speculation has arisen suggesting that this receiving address might be linked to Coinbase’s internal address.

Notably, FTX, the cryptocurrency exchange, has been holding a significant amount of Solana before its recent bankruptcy filing. Now, the exchange is liquidating these holdings to meet its creditor obligations.

However, this setback hasn’t dampened the spirits of Solana investors, who continue to drive a bullish price rally.

SOL’s Current Price Action and DeFi TVL

In the latest market update, SOL is currently valued at $60.10, marking a 6.87% decline in the past 24 hours. Despite this minor setback, SOL has shown resilience over the week, recording a 12.23% increase and an impressive 46.84% surge over the last 30 days.

Recent market dynamics reveal an unsuccessful attempt by SOL’s price to breach the $65.3 mark. Additionally, the asset has recently dipped below the critical support level of $62.5. Analysts posit that a potential bullish scenario may unfold if the price successfully breaks above $63.4, paving the way for a retest of the $65.3 resistance level.

In the event of a bullish breakthrough, market observers anticipate a potential ascent towards the $79.1 level. Conversely, a dip below the $59 level could signal a downward trajectory, potentially testing the support level at $56.4. Investors and analysts are closely monitoring these key levels for potential market shifts.