Crypto Data Space
CDS Crypto News SOL Price Rally: 5% Growth After FTX Liquidation Alarm
Crypto News

SOL Price Rally: 5% Growth After FTX Liquidation Alarm

SOL price demonstrates v-shaped recovery after touching $17.5 support, anticipates 61.8% retracement for gains beyond $20.

506
Sol Price Rally 5% Growth After Ftx Liquidation Alarm

Crypto News– SOL price rally has demonstrated its resilience to investors amidst swirling rumors of a potentially massive liquidation event involving the troubled exchange FTX. The history of the smart contracts token’s association with FTX, dating back to November, has cast a shadow over its performance, particularly its drop to $8.

SOL Price Rally: 5% Growth After FTX Liquidation Alarm

Investor concerns initially revolved around the court’s approval for FTX to liquidate its crypto holdings, a significant portion of which is in Solana. Many anticipated a substantial price decline. However, as recent reports indicate, FTX plans to execute the liquidation in a structured manner, releasing $100 million worth of assets weekly, with the possibility of increasing this amount to $200 million in the future. The 5% price increase observed on Thursday, pushing SOL to $18.85, suggests that Solana may have reached a bottom and is awaiting a catalytic event to initiate a bullish rally. The previously discussed support level at $17.5 appears robust enough to maintain the ongoing uptrend, supported by the lower ascending trendline.

Sol Price Rally 5% Growth After Ftx Liquidation Alarm

Traders should keep a close eye on the Moving Average Convergence Divergence (MACD) indicator for a potential buy signal, which would confirm the legitimacy of the emerging uptrend targeting price levels beyond $20. Confirmation would be signaled by the blue MACD line crossing above the red signal line, indicating a strengthening bullish momentum.

Despite the 5% surge, Solana remains in a somewhat uncertain territory. A subsequent breach of the upper ascending trendline would act as a signal that the odds favor price gains above $20. Until such a break occurs, traders should exercise caution, as there is no assurance that SOL’s price won’t retrace and weaken the $17.5 support, potentially leading to a prolonged downturn towards $13.5 and $10 if panic selling ensues.

On the four-hour chart, a more pronounced bullish resurgence is evident, reinforced by a buy signal from the MACD indicator. If SOL can maintain its grip on the $17.5 support level and close the gap to $20, it may gain more favor among traders as a solid investment opportunity.

Sol Price Rally: 5% Growth After Ftx Liquidation Alarm
Sources:coingape

Leave a comment

Leave a Reply

Related Articles

5 Crypto Market Trends in 2025: Insights from a16z Partner Daren Matsuoka

5 Crypto Market Trends in 2025: Insights from a16z Partner Daren Matsuoka

2025 Bullish Market Trends: Fetch.ai (FET) and Injective (INJ) Lead the Way

2025 Bullish Market Trends: Fetch.ai (FET) and Injective (INJ) Lead the Way

Garanti BBVA Launches Crypto Trading Services: Turkey Ranks Third in Global Adoption

Garanti BBVA Launches Crypto Trading Services: Turkey Ranks Third in Global Adoption

Phuket Robbery: Russian Man Beaten for Crypto Debt in Karon Hotel

Russian man assaulted and robbed of $20,000 in Phuket over cryptocurrency debt;...