Solana Breaks Through $64 Support, FTX Wallets Transfer $13.5M SOL During Rally Pause – What’s the Next Move?

ETF Euphoria and Altcoin Gains

ETF euphoria has given investors free altcoin gains, keeping bitcoin prices constant. While the surge is intriguing, traders should beware of a surprise correction.

The Surprising 25% Rally in Solana

The surprise 25% rally in Solana pricing before the weekend has been one of the significant stories of the past several days. SOL is now one of the most desired institutional investments, which may explain the surge.

SOL Prices Soaring 150% in the Last Month

In recent weeks, SOL (Solana) emerged as the leading primary cryptocurrency, experiencing a remarkable 150% surge in price over the past month.

However, the token’s rally appears to have paused as wallets associated with the bankrupt FTX exchange, holding millions in SOL, continue to move funds.

According to the On-chain analysis tool PeckShield, these FTX-related addresses transferred significant amounts of SOL and USDT stablecoins to exchanges like Binance and Wintermute, potentially signaling a plan to sell the tokens on the open market.

Overall, FTX has deposited $24M worth of 3 assets to Kraken and OKX in the past 5 hours, including 250K SOL ($13.5M), 8.27M MATIC ($7.41M), and 1,500 ETH ($3.1M). As of Nov 14, FTX and Alameda have transferred $438M worth of 42 assets to exchanges. It looks like something is brewing within FTX.

SOL Faces a Downturn, Despite Gains!

Consequently, SOL prices witnessed a 7.5% drop in the last 24 hours, outperforming the average 0.6% losses across other tracked cryptocurrencies.

The movement of funds from these wallets tied to the FTX bankruptcy follows earlier sizable transactions to exchanges like Binance and Kraken, affecting SOL’s price performance.

Despite this recent downturn, SOL has surged by 150% in the past month and over 500% year-to-date, partly due to enthusiasm surrounding its blockchain technology. Additionally, the debtor group staked around $120 million worth of SOL tokens in October, temporarily alleviating concerns about a massive sell-off as these tokens were locked up.

Can $SOL Reach $100?

However, the debtor group’s intentions remain unclear regarding its substantial SOL holdings, estimated at over $1 billion, acquired during 2020-2022.

Although some SOL holdings were liquidated by unstaking approximately $67 million, the movement of more than $100 million worth of SOL to exchanges has influenced SOL’s impressive price rally, contributing to the token’s volatility amidst ongoing uncertainty about the debtor group’s plans.

Resistance at $64 and Potential Downtrend

Solana faced resistance at $64, signaling a potential downtrend. The rejection at this level may lead to a continued decline toward $41. If the bears breach moving average lines, the current rally might halt, resuming the downtrend. Right now, Solana is aiming for its earlier high near $46.77.