Solana (SOL) had some pretty unsavory times because of FTX. On a monthly and bi-weekly timeframe, the SOL data is bearish. Will the altcoin price continue to decline? Or will it start to recover? Here are the expert opinions…
FTX collapse also affected Solana
cryptocoin.com As we’ve reported, SOL has been losing a lot of energy since FTX crashed. According to analysts, bearish signals are also coming from technical analysis. Prices are likely to drop below the 61.80 Fibonacci level currently at $12.58. If the drop has anything to do with FTX, it seems that FTX’s “sister company” Alameda Research had a key role in the Solana ICO. Investor confidence has been impacted by concerns about Solana’s close ties to SBF and the company. It also regressed after developments such as the stock market holding almost a billion SOL.
Is altcoin dying?
SOL was the “poster child” of the crypto industry. At the time of writing, the token is down 62.2 percent from its pre-FTX price of $36.83. It is currently trading in a red candle at $13.55. However, comments about Solana’s future seem to have started to turn dark even before the collapse. Messari’s Q3 report on Solana reveals that only certain ecosystem components, such as NFTs, have truly stabilized or even evolved.
However, the technical aspects of the token show potential. According to analyst Christian Encila, the RSI data pointed to “oversold” while the metric slowly gained momentum. This is supported by a positive increase in the CMF index. On the 4-hour time frame, it formed a bearish triangle. The regression channel with Pearson’s R score of 0.7 indicated that a downtrend is more likely than an uptrend. This confirms more downside pressure. Also, the narrow BB channel is also extremely bearish.
Concern in Solana ecosystem post FTX
Apart from that, fear and a negative market mood dominate the market as a result of Solana’s close relationship with FTX. The 4-hour timeline provides information on the future state of SOL. According to the analyst, $13.07 is a vital support zone for the SOL not to “disappear”. If the indicated support is broken by the bears, there is no drop below the 61.80 Fibonacci level.
InvestAnswers: “Solana has nothing to do with death”
While Christian Encila expects bearish, pointing to negative techniques in the cryptocurrency, another analyst points out that nothing is ending in the SOL ecosystem. James Mullarney, host of InvestAnswers, explained that although Solana was “hit” by his exposure to FTX and Alameda Research, he was far from dead. The InvestAnswers host had this to say about Solana:
We are here. [Solana] still working. LEFT is still here. The developers are still working… It’s not dead. It has been hit by exposure to FTX and its associated scammers, but judging by the data, the chances of survival seem very high, especially when you compare it to other cryptos that are not very active today. Remember, crypto is Darwinian. The question is: ‘Who will survive?’ The fittest always survive. The most suitable in this respect are those who provide lower wages, highest TPS, decentralization, best leadership.
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