FTX’s announcement regarding the commencement of the third tranche of the auction for locked Solana coins has injected optimism into the market amidst a broader sell-off.
Despite the recent bearish trend in Solana’s price, indicators such as the Relative Strength Index (RSI) and the Awesome Oscillator (AO) suggest underlying bullish sentiment.

Amid the broader market sell-off, Ethereum Layer-1 competitor Solana has also witnessed a sharp pullback dropping all the way to $120 levels earlier today. However, in another major announcement on Wednesday, May 1, bankrupt crypto exchange FTX announced that they would soon commence the third tranche of the auction for the locked Solana coins in their holding.

According to reports, the FTX liquidators managed to sell approximately 1.8 million SOL tokens in the second round, generating around $232 million over several weeks, per the Crypto News Flash report. Bids for the tokens ranged between $85 and $110 each, with those above $95 being predominantly successful and those below $85 rejected.

Notably, purchases at $95 per token represented a 26% discount, while those at $110 per token garnered a 15% discount. This reduction was mainly due to the licking up of tokens, delaying their availability for trading, with a four-year vesting schedule for the acquired tokens. Participants in the second round included Galaxy Trading and Pantera Capital.

In the initial round, the FTX estate sold SOL worth $1.9 billion, comprising nearly two-thirds of a larger lot valued at $2.6 billion, including up to 30 million SOL tokens initially priced at $64 each.

As the third round commences, Figure Markets CEO Mike Cagney confirmed their participation and mentioned the development of a special-purpose vehicle to facilitate bids. Their focus is on non-US and accredited US investors.

Solana (SOL) Price On Path to Recovery

Solana’s price trend remains bearish, despite the presence of a potential bullish reversal pattern. However, the overall bullish outlook remains intact, supported by the Relative Strength Index (RSI) holding above the key level of 50. Additionally, the Awesome Oscillator (AO) indicator remains in positive territory, indicating ongoing bullish sentiment in the market.

Traders considering short positions on SOL should await confirmation of the RSI closing decisively below the 50 level. Until then, there may be potential for Solana’s price to rebound, possibly triggered by a strong performance in Bitcoin’s price.

The Solana price has bounced back significantly from the lows of $120. As of press time, SOL is trading 11.24% up at a price of $133, per the Crypto News Flash report. If the Solana price manages a candlestick close above the neckline of the rounding bottom pattern, currently situated at $126.86, major long positions will be initiated.

The positive outlook for SOL follows an announcement by Zeus Network proposing to designate Solana as “the Layer 2 solution for all blockchains” through ZPL (Zeus Program Library) and assets facilitated by a permissionless communication layer. Essentially, this means that users could transform assets such as BTC into a ZPL-Asset, such as zBTC, enabling access to the Solana ecosystem.

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Filed under: Bitcoin - @ May 2, 2024 10:21 am