Solana Loses 60% Of Its Value After FTX Collapse – Can SOL Bounce Back This Week?

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According to Stephane Rust, chief executive officer (CEO) of Laguna Labs, the Solana (SOL) ecosystem has hard hit Compared to other major digital coins such as Bitcoin and Ethereum following the collapse of the FTX crypto exchange.

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Here’s a quick look at SOL’s performance:

  • Solana lost almost 60% of its market capitalization after FTX collapse
  • SOL is up 2% in the last 24 hours, trading above the $14 marker
  • Solana coins deposited on the blockchain have dropped sharply from 68 million in June to about 25 million now

“In the current crypto shakeout, the most unfortunate innocent victim is the Solana ecosystem,” Rust said.

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The CEO pointed out that the network’s native token, SOL, is down nearly 60% since the collapse of FTX.

In comparison, Bitcoin is down by 19% and Ethereum by around 20%.

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Rust and other crypto players have reason to believe that FTX and its trading firm, Alameda Research, sold large amounts of Solana crypto to plug their losses and get away with it. affect cryptocurrency and its trading price.

Whether or not the altcoin can rally in the coming days is anyone’s guess by this point, especially as its technical indicators are considered heavily from the bulls’ perspective.

How is Solana doing and where is it going

After falling all the way to $12.07 with a 2% increase over the past 24 hours to trade at $14.21 at the time of this writing, SOL made a recovery of its own, according to tracking from . koingeco,

Source: TradingView

In the past seven days, the crypto asset’s price action has indicated twice bullish block formation This was considered an encouraging sign for its investors.

The first was on November 10 when Solana swung between a narrow range of $18.3 and $12.35, establishing the mid-point of $15.33 as an important support and resistance zone.

The second instance was on November 14 when the altcoin ignored its lower time-frame bearish structure as it climbed to $14.43, turning its bias bullish.

With this, traders and investors looking to take profits should turn their attention to the $13 to $13.25 area as an optimal entry point, although it is not without risk as the asset is struggling right now.

Its Relative Strength Index (RSI) settled in the 50-55 score region, indicating that the volatility of SOL can easily ruin any plans for long trade set-ups.

solana

Image: Altcoin Buzz

Investors and app developers are leaving Solana

After the FTX explosion and the negative effects it had on the crypto asset’s ecosystem, app developers and investors seemed to have abandoned sinking ship.

According to data from DeFiLlama, the current number of Solana coins stored on the blockchain widely used for decentralized finance applications is 24.74 million. The number is significantly lower than the 68.2 million tally recorded back in June.

In light of this development, co-founder Anatoly Yakovenko allayed investors’ fears, saying that Solana Labs does not have any assets stored on FTX and that as far as financial stability is concerned, under its current status , it will be good for business for the next. 30 months

Meanwhile, Raj Gokal, another co-founder of the company, also expressed his sentiments saying that this is a crucible for Solana which will make it even stronger in future.

Crypto total market cap at $805 billion on the daily chart | Featured image from The New Daily, Chart: TradingView.com



Credit : www.newsbtc.com

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