Solana (SOL) Experiences 7% Price Decline Following FTX Cold Wallet Transfers – What Comes Next?

Solana (SOL) Price Correction and FTX Cold Wallet Transfers

Solana’s price, currently above crucial support at $59, is undergoing a correction, with analysts anticipating a swift recovery that could propel SOL beyond $70.

Amidst a period of mild consolidation in the broader cryptocurrency market, Solana (SOL), a leading competitor to Ethereum Layer-1, is experiencing a notable price correction. As of the latest update, the Solana (SOL) price has declined by 7%, currently trading at $60.32, with a market capitalization of $25.5 billion.

Why Is Solana Price Down?

Solana has recently witnessed a significant price rally, becoming the sixth-largest cryptocurrency by market cap. The price drop coincides with a massive transfer through an FTX cold wallet.

In a recent development reported by Lookonchain, an address closely associated with the FTX cold wallet unstaked a significant amount of 1.5 million SOL (equivalent to approximately $90 million). This unstaked amount was then transferred to the address 3vxheE5…5mgkom, with speculation that it may be linked to Coinbase’s internal address.

Despite FTX liquidating its holdings, Solana investors continue their bullish price rally.

SOL Price Action and DeFi TVL

In the latest market update, SOL is quoted at $60.10, marking a 6.87% decline in the past 24 hours. Despite this setback, SOL has shown resilience, with a 12.23% increase over the week and an impressive 46.84% surge over the last 30 days.

Recent market dynamics reveal an unsuccessful attempt to breach the $65.3 mark, and the asset has dipped below the critical support level of $62.5. Analysts suggest a potential bullish scenario if the price breaks above $63.4, paving the way for a retest of the $65.3 resistance level.

If a bullish breakthrough occurs, market observers anticipate a potential ascent towards the $79.1 level. Conversely, a dip below the $59 level could signal a downward trajectory, potentially testing the support level at $56.4. Investors and analysts closely monitor these key levels for potential market shifts.

Cryptocurrency analyst Ali Martinez warns of a potential correction for Solana:

  • TD Sequential signals sell on $SOL weekly chart, and RSI is overbought.
  • A profit-taking surge could lead to a retracement to $47.6.
  • SOL needs a weekly close above $68.4 to counter the bearish outlook, targeting $108.

Moreover, Solana, known for its exceptional throughput and scalability, is making waves in the decentralized finance (DeFi) realm. The recent surge in Total Value Locked (TVL) to an impressive $655 million showcases Solana’s growing influence and confidence within the DeFi sector.

This milestone not only reflects numerical success but also highlights Solana’s emergence as a formidable player in decentralized finance. While DefiLlama’s October statistics placed Solana’s TVL at around $326 million, a recent update reveals a remarkable doubling to over $655 million, marking the highest TVL in over a year and signaling robust and sustained growth.

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