Technology

SOL Price Relaunches Uptrend From $18 Support – Crypto News

Published

3 years ago

September 12, 2023

Dripp

SOL price, like many of its peers in the market, continues to deal with vulnerabilities both from macro and technical perspectives. On top of the weak market structure that has since June left cryptos significantly depressed, analysts predict a massacre likely to sweep through the Solana ecosystem as the collapsed FTX exchange liquidates massive holdings in SOL.

SOL Price Up 3% Despite FTX Liquidation Risk

The bankrupt FTX exchange, whose implosion sent the crypto market into disarray in November, could be preparing to sell off its massive holdings in crypto – worth around $3.4 billion.

According to a report by IntoTheBlock, the impending FTX liquidation could adversely impact Solana and Ethereum to the extent of erasing the gains made since December.

“Despite positive news about Visa and a potential spot ETH ETF, FTX’s impending $3B liquidation could be dictating market movement,” IntoTheBlock commented.

FTX is looking forward to receiving the green light to liquidate the positions it holds in various cryptocurrencies, mainly altcoins on September 13.

Meanwhile, some crypto enthusiasts like the renowned commentator, Hitesh.eth say that calls for a sell-off could be premature noting that the liquidation process is unlikely to start immediately after the green light.

Besides, court documents reckon that FTX is seeking approval to offload at least $100 million in crypto assets every week, with the leeway to increase the transactions to $200 million.

Some clarification on FTX Crypto Liquidation.

FTX is likely to get approval to liquidate assets on 13 Sept, It doesn’t mean they would start selling assets immediately after they get approval. They are not allowed to sell anything as of now.

I cross checked with @sunil_trades… pic.twitter.com/nmGOZeD0zv

— hitesh.eth (@hmalviya9) September 10, 2023

SOL Price Defends $18 Support

SOL price is up 3.5% to $18.4 after bouncing off support at $18 as bulls hold firmly to the lower ascending trendline. Another daily close above this crucial price level would imply that the path with the least resistance is to the upside and that the bearish sentiments regarding FTX liquidations have been kept in check.

SOL/USD daily chart | Tradingview

Although traders are expected to be cautious going forward, looking out for a potential buy signal from the Moving Average Convergence Divergence (MACD) indicator could call on investors to seek more exposure to longs in the price of Solana as confidence in the uptrend rebuilds.

The knee-jerk reversal above $18 is expected to continue in the short term especially with SOL price facing highly oversold conditions.

However, the uptrend would only remain valid if SOL price covered the ground above $20 allowing investors to anticipate the subsequent run-up to the hurdles at $25, $27, and $30.