The post Solana’s Market Moves: Navigating FTX Liquidations and Potential Recovery Challenges Ahead appeared on BitcoinEthereumNews.com.

Solana (SOL) is currently facing turbulent market conditions, under pressure from FTX’s ongoing liquidation process and a significant drop in network activity. An impending release of 11.2 million SOL tokens from FTX’s estate, valued at approximately $1.5 to $2 billion, has heightened fears of a dramatic sell-off, affecting SOL’s price trajectory. According to market analysts, the narrative around SOL’s volatility is compounded by recent comments from crypto leaders, including DeFiance Capital’s Arthur Cheong, who noted the unsettling effects of FTX-related liquidations. This article explores the recent volatility in Solana’s market, with key insights into the effects of FTX liquidations and current SOL price dynamics. The Impact of FTX Liquidations on Solana’s Market Dynamics Solana has found itself in a precarious position as a result of the FTX liquidation saga, significantly impacting its market valuation. The anticipated unlock of a substantial amount of SOL tokens has led to increased selling pressure, raising concerns among investors about potential price drops. The drop from a high of $224 in February to lows around $140 indicates the dramatic shift in investor sentiment as fears of liquidity issues loom. Decreased Network Activity Amid Market Volatility In addition to the token unlock fears, Solana’s network activity has also seen a sharp decline. Reports show a staggering 99% decrease in transfer volume from late 2024 highs, signaling a troubling trend for one of the initial leaders in the smart contract space. This abysmal drop can primarily be attributed to reduced engagement from users and liquidity fleeing to competing platforms, compounding the already bearish market sentiment. Evaluating Price Resistance and Institutional Sentiment Solana’s price trajectory has broken several key support levels that once suggested bullish potential. The movement below $168, followed by further decline to $144, indicates significant resistance in maintaining higher price points. Whether this represents a…

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Filed under: News - @ March 3, 2025 9:20 am