Crypto Trader Warns of Solana Sell-Off, Says SOL Bottom Should Take a While To Form

A intently adopted crypto strategist believes that Solana (SOL) continues to be in a downtrend regardless of final week’s surge.

Pseudonymous analyst Altcoin Sherpa tells his 196,300 followers on the social media platform X that Solana is going through a key resistance stage at round $19.50.

In accordance with the analyst, Solana has been printing bearish lower-high setups ever since hitting its 2023 excessive of $32.30 in July.

“Could be cautious on this present transfer up. It’s good to see some restoration however each rally the previous couple of weeks has resulted in only a decrease excessive. Regardless, when you’re in it for an funding, it cant be dangerous to build up sub-$20.” 

At time of writing, SOL is buying and selling for $19.04, up over 8% from its seven-day low of $17.57.

Ought to SOL’s newest rally fade, Altcoin Sherpa says that the $14 stage might act as assist. Nevertheless, he warns that SOL’s prospects of staying above $14 all rely upon how the bankrupt crypto trade FTX liquidates its huge Solana trove to the tune of $1.16 billion.

“This one ought to take some time to type a backside although. I don’t know if the FTX stuff is ‘priced in.’ The following few months will probably be very attention-grabbing to see how the value reacts to the big provide available on the market.” 

Whereas Altcoin Sherpa is sounding the alarm about FTX’s massive Solana holdings, investor Chris Burniske tells his 263,400 followers on the social media platform X that solely a tiny quantity of the defunct crypto trade’s SOL trove is liquid.

“Solely ~13% of FTX’s SOL holdings are liquid.” 

Burniske, who’s a companion on the crypto-focused enterprise capital agency Placeholder, says that he’s long-term bullish on SOL regardless of its FTX baggage.

“ETH and BTC each have baggage and have made new ATHs (all-time highs) in every main growth. Each human is flawed, each establishment is flawed and each coin is flawed.

In different phrases, all of us have baggage, and many people, be it a human, establishment, or cash, proceed to make new ATHs.” 

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