After Binance and FTX engaged in a word war on social media – and eventually making amends (well, sort of; Binance said today it’s buying FTX) – Solana got dumped violently.
Solana’s native token, SOL, is trading in the red across all time frames, as reported by CoinGecko, lending credence to the bearish claims.
When asked what a Binance deal for FTX meant for Solana, Ran Neuner of CNBC Crypto Trader and founder of Crypto Banter referred to SOL’s pricing issues.
He tweeted:
“Solana [is] getting killed.”
He claims that the market has only recently realized that Binance CEO Changpeng Zhao “now owns 10% of the tokens and that he would prefer support the BNB chain than SOL.”
SOL traders and investors are dealt a severe blow. Solana investors have suffered the worst month ever in November.
Solana getting killed. The market realizes that @cz_binanceNow, he owns 10% of tokens. He also stated that he prefers to support BNB chain over SOL. Solana also lost all of the support and investments that FTX received. @SBF_FTXthey made in the ecosystem.
— Ran Neuner (@cryptomanran) November 8, 2022
CoinMarketCap data shows that the currency experienced a more than 20% weekly drop. SOL at Coingecko is down 37% over the past seven days.
Chart from TradingView
While the Solana network was able to benefit from the recent advances in its network network, SOL’s market behaviour over the past week is very concerning. lackadaisical.
Negative effects of FTX on Solana
In a related development, the FTX’s native token, FTT, has had its value drop across all time scales as well, and is currently trading at $4.058. Meanwhile, after being rejected at the $38.26 area, SOL is now trading in the red at the $17.52 range, reflecting the same downward shift, courtesy of the negative impact that FTT’s drop has brought along.
Now, the charts also don’t look good for SOL buyers and sellers. The CMF signal shows that there is no complete turnaround in mood. This signals only compares to the cryptocurrency market crash caused by Terra.
Image from The Independent
Investors and traders also receive significant bear market signals from the RSI. This makes the market more unstable.
Despite all this, crypto enthusiasts remain skeptical about a possible bullish reversal. The crypto market cap fell after BTC and other tokens were lost in the FTX brouhaha.
There are still things that can be done
As the coin is currently in freefall, SOL bulls can position themselves at the 23.60 Fibonacci retracement level, which can serve as a launchpad for a possible relief rally in the near future.
Nevertheless, the possibility of such support could be a mere speculation in the face the continuing drama between FTX & Binance.
We can only hope that the market will continue to decline. The latest price crunch is fueled in part by a high institutional fear that another LUNA implosion might occur, and current investor sentiment reflects this anxiety in the form of panic selling on the cryptocurrency market, which exerts more downward pressure on SOL.
As of this writing, SOL is trading at a new low of $16.55, which does not bode well for the coin’s investors and traders. Investors and traders have the option to purchase dips and possibly halt market declines if the chance presents itself.
SOL Total Market Cap at $7.18B on Daily Chart | Featured image from NBC News, Chart: TradingView.com