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Solana Drops more than 50% of its Value with the Bankruptcy of FTX

Solana Drops 60% of its Value with the Bankruptcy of FTX

According to Laguna Labs CEO Stefan Rust, the Solana (SOL) ecosystem was struck harder than other major digital currencies like as Bitcoin and Ethereum, after the bankruptcy of the FTX crypto market.

Since FTX’s demise, the network’s native token, SOL, has decreased by approximately 60%, according to the CEO. In contrast, Bitcoin plunged by 19%, and Ethereum fell by over 20%.

Rust and other cryptocurrency players think FTX and its trading business Alameda Research sold a big amount of Solana coin to offset losses and remain afloat, impacting the crypto and its trading price.

Where is Solana Heading?

After falling to $12.07, SOL staged its comeback, rising 2% in the previous 24 hours to trade at $14.21 at the time of writing, according to Coingecko monitoring. The price behavior of the crypto asset has twice suggested the creation of a bullish block in the previous seven days, which was intended to be a positive indication for its investors.

Source: Tradingview

The first occurred on November 10, when Solana fluctuated between $18.3 and $12.35, marking the mid-point of $15.33 as a critical support and resistance zone. The second occurrence occurred on November 14, when the cryptocurrency defied its lower timeframe negative structure and surged to $14.43, reversing its bearish bias.

As a result, traders and investors aiming to benefit should target the $13 to $13.25 range as an excellent entry point, albeit this is not without risk, given the asset’s current struggles. Its Relative Strength Index (RSI) stabilized in the 50-55 range, suggesting that SOL volatility may quickly derail any long trade setup ideas.

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