Binance Receives $10 Million Worth of Solana Tokens – How Will It Affect SOL Price?

FTX and Alameda’s Strategy for Liquidating SOL Tokens

Solana (SOL) is currently under downward price pressure as FTX and Alameda proceed with the liquidation of SOL tokens valued in millions. In an effort to repay creditors, FTX and Alameda have been executing a strategy to liquidate the cryptocurrency assets they hold. A wallet associated with the cryptocurrency exchange FTX moved $10 million worth of Solana (SOL) tokens on a Wednesday, part of their ongoing plan to sell off these assets.

Back in September, FTX and Alameda were issued a court order to liquidate crypto assets totaling $3.4 billion. To minimize the impact on prices, they decided to gradually sell off these crypto assets.

FTX Transfers SOL Tokens to Binance

On October 28, PackShieldAlert reported that an FTX-associated wallet transferred 309.2k SOL tokens, valued at over $9.9 million. Additionally, nearly 244k SOL tokens were sent to the crypto exchange Binance. This move occurred while the price of Solana had surged by 70% in October, allowing FTX Debtors to sell more of their SOL holdings. Sam Bankman-Fried, the former FTX CEO, informed the jury that he began buying Solana when its price was just $0.20.

According to data from Spot On Chain, FTX and Alameda Research still possess EVM assets amounting to $736 million, despite recent deposits to various crypto exchanges in the past few days. In September, a Delaware Bankruptcy Court approved a plan for FTX Debtors to liquidate crypto assets worth $3.1 billion held at FTX and Alameda Research.

SOL Price Declines Due to Liquidations

Over the last 24 hours, the price of Solana (SOL) has fallen by more than 2%, and it’s now trading at $31.60. The lowest price during this period was $31.53, while the highest was $33.30. Additionally, trading volume has decreased by 25% in the past 24 hours, suggesting that trader interest has waned.

Analysts are anticipating that Solana might temporarily pull back to find new buyers before potentially surging to $40. This optimistic outlook is based on the presence of double golden cross patterns.