SOL Bulls Stage a Comeback After FTX Slump, but Analysts Remain Cautious Amid Solana’s Soaring Momentum

The Rise of SOL: Breaking Down the Numbers

SOL, the primary currency of Solana, has emerged as one of the top-performing coins in the crypto market, consistently maintaining its position within the top 10 according to CoinMarketCap, a leading crypto tracker. As of October 31, SOL is trading above $36, marking a significant turnaround from its post-FTX collapse lows, where it plummeted to as low as $8 in Q4 2023. Over the past 11 months, SOL has steadily recovered, reaching 2023 highs and outperforming major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

Current Market Trends and Analysis

Examining the daily chart, SOL is now in a bullish breakout formation, surpassing the July 2023 high of around $32. This surge is accompanied by a rise in trading volume, indicating strong support from optimistic traders. Additionally, the bull bars are riding the upper Bollinger Bands (BB), diverging from the middle BB, signaling high uptrend momentum and potential price support. The Bollinger Bands, a key technical indicator for measuring price volatility, underscore the current market conditions favoring Solana.

FTX Bankruptcy and Its Impact on SOL

The bankruptcy of FTX, a popular exchange, triggered a sharp decline in SOL’s value in November 2022. FTX, once a major player, collapsed following revelations that its founder, Sam Bankman-Fried, had misappropriated user funds. The subsequent bankruptcy filing had a significant impact on the broader Solana ecosystem, leading to a decline in SOL prices.

FTX Estate’s Staking Strategy

FTX, through its subsidiaries, was a significant holder of SOL, with approximately 16% of the outstanding supply, valued at over $1 billion. Following FTX’s filing for bankruptcy protection, the Bankruptcy Court for the District of Delaware ruled that FTX could sell and invest its crypto holdings to repay creditors. As part of their strategy, the FTX estate staked 5.5 million SOL in mid-October via Figment, a platform commonly used by institutional investors.

By staking SOL, the FTX estate, managed by a bankruptcy trustee, expressed confidence in the coin’s future, as it retains the option, as directed by the court, to liquidate it at any time. Furthermore, staking allows the estate to acquire more SOL. However, recent data from Nansen’s report on October 31 revealed that the FTX estate unstaked 1.6 million SOL, raising questions about their intentions, including the possibility of liquidation, which could potentially impact SOL prices.


In conclusion, Solana’s remarkable recovery following the FTX collapse highlights the resilience of the cryptocurrency market. While SOL has experienced substantial gains, there are lingering concerns, especially regarding the actions of major stakeholders like the FTX estate. As the market continues to evolve, careful observation of these developments is crucial for investors navigating the dynamic crypto landscape.

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