Solana (SOL) price has finally broken below the $20.37-$26.85 trading range. The smart contract token had been trading inside this range since January 2023. Bears are gaining momentum after the breakdown amid fear of a major liquidation event.
Altcoins are suffering yet again as BTC price has fallen below the $25,500 level. The weakness in the leading cryptocurrency has caused an increased selling pressure in altcoins like Solana. On Monday, SOL price plummeted another 3.91% in a bearish start to the week.
Is FTX Going To Dump $128M SOL?
Since last week, rumors have been circulating that the bankrupt crypto exchange FTX may soon liquidate its digital asset holdings. Tweets from some pseudo-analysts on Twitter further intensified the fear among the holders, triggering a sell-off.
According to Cointelegraph, there is currently $128 million worth of SOL crypto held by the FTX. Considering other assets, it puts around $1.5 billion on the Solana network in different altcoins. It is highly unlikely that the FTX will liquidate all of its SOL holdings due to the court restrictions. Nevertheless, Solana price remains in a tailspin as the short selling increased over the weekend.
Solana Price Prediction Flips Bearish
As mentioned earlier, SOL price has broken below the trading range, as shown in the following chart. Solana price prediction will remain bearish for me as long as the price remains below this trading range. If bulls fail to reclaim $20.45 soon, the price may retest the $15.5-$16.9 demand zone soon.
If Bitcoin price breaks below $25,000, then a deeper correction to $14 is also possible for SOL. However, due to heavy short selling, a short squeeze event could also be on the cards. Many times, whales spread negative news in the market to accumulate more coins at lower prices.
In the meantime, I’ll keep sharing updated Solana analysis and my personal trades on my Twitter, where you are welcome to follow me.
