- FTX’s $3.4 billion sell-off worries Solana investors.
- FTX plans gradual liquidation to prevent a price crash.
- Solana bulls aim to break $20 EMA for a $22.4 target.
Solana investors are closely monitoring a crucial battle unfolding in the crypto market. As FTX, a prominent exchange dealing with financial distress, readies itself for a substantial $3.4 billion liquidation event, Solana (SOL) bulls are working diligently to defy the odds and push the price beyond the 20-day Exponential Moving Average (EMA).
FTX’s impending liquidation has raised significant concerns about the market’s stability. The crypto community is currently grappling with uncertainty following the announcement of a massive sell-off, as potential bearish trends appear to be on the horizon. It’s worth noting that FTX holds a substantial amount of Solana, with over $1.1 billion worth of SOL in its portfolio.
However, there is a glimmer of hope for Solana enthusiasts. FTX has outlined a gradual asset liquidation strategy, with plans to sell off no more than $100 to $200 million in digital assets weekly. This phased approach is designed to mitigate the immediate impact on asset prices and prevent a sudden plunge.
In this volatile climate, Solana bulls have stepped up their game. Their primary goal is to push SOL’s price above the 20-day EMA, which currently stands at around $20. This indicator has been a crucial point of resistance, and overcoming it could signal a potential recovery for Solana, with a target price of $22.4 in their sights.
