FTX destaking 3.96 million SOL and transferring 750,000 SOL to exchanges: Is a setback coming for Solana?

Solana Cryptocurrency

In a surprising move, FTX, the bankrupt cryptocurrency exchange, staked 3.96 million Solana (SOL) and transferred 750,000 SOL to popular exchange platforms Binance and Kraken. These events have generated quite a stir in the crypto community, and speculation about what the future could hold in the SOL market is at an all-time high.

Lookonchain Analysis: $30 Million Value at Stake

Market analysis platform Lookonchain was the first to report on FTX’s shocking action. According to their estimates, the 750,000 SOL transferred have a value of approximately $30 million. This figure is significant and has made investors and cryptocurrency enthusiasts attentive to what happens next.

Community Comments: Is a Bear Season Coming?

Comments on social media and cryptocurrency forums were filled with voices anticipating a possible bearish season in the SOL market. The crypto community is concerned about the selling pressure that could result from this FTX action and what that could mean for Solana’s recent bull run.

Previous FTX Moves: What Do They Reveal?

On November 3, Lookonchain also highlighted that FTX had transferred a total of 1.1 million SOL, valued at approximately $42.35 million. Additionally, FTX moved 7,183 ETH, equivalent to about $12.9 million. In summary, that day FTX transferred a staggering total of $221.7 million in crypto assets. Despite these considerable sales, SOL saw an impressive 19.12% increase in just seven days.

SOL maintains its position despite FTX’s moves

Despite FTX’s action, SOL, Solana’s native token, still maintains an impressive 16%+ rise in the market over the seven-day period and continues to trade above $40. However, looking at the one-day chart, SOL saw a drop of 3.42%, according to CoinMarketCap, sitting at $40.37 at the time of reporting.

Declining Trading Volume: Indicative of Declining Interest?

SOL’s trading volume has dropped significantly, falling 8.06% in just 24 hours and valuing it at $900,291,525. This decline in trading volume is often interpreted as a sign that trader interest and demand for this altcoin may be declining.

SOL market capitalization and its position in the ranking

Despite recent events, SOL’s market capitalization remains strong, valued at $16,958,785,373, placing it in seventh position in terms of market capitalization in the world of cryptocurrencies.

Technical Analysis: Is a Downtrend Coming?

Looking at the one-day chart of SOL/USDT, we see that the candles have been near the upper bands of the Bollinger Bands for an extended period. However, recently, the RSI has formed a bearish crossover, leading the altcoin price to produce two new red candles. This technical development could be an indication of a downtrend on the horizon.

Daily chart for SOL/USDT. Source: TradingView

To end…

The cryptocurrency market is always full of surprises, and FTX’s action has left the crypto community in a state of uncertainty. As SOL continues to show strength, investors should keep an eye on future moves and market signals that could indicate a bear season on the horizon.