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Altcoin expert Altcoin Sherpa believes that despite the rise of Solana (SOL), one of the leading altcoins, it is still in a downward trend. The analyst warned that there could be a sharp decline.
FTX Pressure on Solana’s Price
Anonymous cryptocurrency analyst Altcoin Sherpa said on his personal account on the social media platform X that Solana is facing significant resistance around $19.50. According to the analyst, Solana has been moving in a downward trend since reaching its highest level of $32.30 in July:
It is necessary to be cautious about this current rise. It’s nice to see some recovery, but every rally in the past few weeks has resulted in lower highs. Regardless, if you are involved in this investment, accumulating SOL below $20 cannot be bad.
SOL is currently trading at $19.04 with a 0.06% increase in the last 24 hours. Data shows that the altcoin has risen 4.54% in the past 7 days.
In case a decline follows the recent rise in SOL, Altcoin Sherpa stated that the $14 level could serve as support. The analyst also warned that the possibility of SOL staying above $14 depends on how the bankrupt cryptocurrency exchange FTX will liquidate its massive $1.16 billion Solana reserve:
Nevertheless, it should take some time for this to form a bottom. I do not know if FTX products are ‘priced in’. It will be very interesting to see how the price reacts to the large FTX supply in the market in the next few months.
Chris Burniske Still Expects a Rise in SOL Despite Everything
While Altcoin Sherpa sounded the alarm about FTX’s large Solana reserve, Chris Burniske, a well-known figure in the cryptocurrency sector, reported that only a small portion of the bankrupt cryptocurrency exchange’s SOL reserve is liquid, stating, “Only 13% of FTX’s SOL assets are liquid.”
Burniske, a partner at Placeholder, a crypto-focused venture capital firm, added that despite the emerging selling pressure, FTX expects a long-term rise in SOL, saying, “FTX holds a large amount of ETH and BTC and has seen new all-time highs with every monetary expansion. Everyone is flawed, every institution is flawed, and every currency is flawed. In other words, we all have a basket, and most of us, whether human, institution, or coin, continue to reach new ATHs.”
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