The Solana price has fallen 5% after a sell-off of the FTX crypto exchange, but if the price shoots back up, $125 million in short positions would be liquidated.
In this article we look at what Solana might do after losing 40% of Open Interest (IO), which suggests there is a lot of uncertainty around Solana’s value. Can Solana rise again towards $160 and will the large number of current short positions be liquidated?
What will Solana do after FTX sell-off?
The Solana price is about -2% lower on Thursday morning than yesterday and has recovered from a bottom of $ 140 to $ 143.68 at the time of writing. SOL fell on Tuesday after hitting $159 as the FTX exchange decided to sell even more Solana to reimburse creditors.
Due to this action, the SOL price yesterday fell back below its 30-day moving average (yellow), which now serves as a resistance level. After reaching $140, the sell-off seems to be over for the time being and SOL could rise back towards $150 in the coming days.
Solana has risen considerably in popularity, so the FTX sell-off has not caused too much damage. In addition, creditors of the exchange, which collapsed in November 2022, will get their money back based on the prices of the day FTX went bankrupt.
Solana is currently still about 1,000% higher than in November 2022, which means that less SOL needs to be sold to reimburse creditors. In addition, FTX is unable to dump everything at once, which would cause significant drops for Bitcoin, Ethereum and Solana.
The Solana price appears to be recovering today and could recover above $150 in the coming week. However, this will require the altcoin to break back above its 30-day moving average around $145, a level where selling pressure is expected to be higher.
Longer term, Solana could see a rally run similar to Binance Coin (BNB) in 2021. Solana could become worth as much as $500 in the emerging crypto bull run.
Which altcoins will explode and can hitch a ride with Solana?
Solana is currently one of the most popular blockchains and this could remain so for the foreseeable future. In this article we look at 2 promising crypto projects on the Solana blockchain that could potentially provide early investors with a lot of profit.
These projects temporarily sell their coins in a presale, which means you can buy them for very low prices. This allows the project to raise money early to become a potential success after launch.
Sealana (SEAL)
Sealana (SEAL) may be a meme coin with no real utility, but it is the successor to Slothana (SLOTH) which rose 100% on day 1 and is now climbing again. Sealana therefore has great potential to follow the same path and make early investors rich.
Sealana is a huge seal with the potential to be worth a lot. From his mother’s attic room, this seal spends the whole day on crypto trading and gets his energy entirely from junk food, something that many crypto traders (especially from the US) can identify with.
You can buy SEAL for 1 SOL per 6900 tokens and will receive these tokens as an airdrop in your Solana wallet after the presale. Next, SEAL will be launched on exchanges and early investors will be able to sell their tokens for a potential profit.
Mega Dice token (DICE)
For those who prefer to invest in something with utility and more future, the new Mega Dice token (DICE) is an attractive alternative. This token helps investors make money passively and gives players of the successful Mega Dice casino access to exclusive bonuses and content.
Mega Dice is a crypto casino that launched last year and today has over 10,000 active players and $50m+ per in revenue. Investors who stake DICE (after the presale) earn a share of this monthly turnover and can therefore grow with the casino in several ways.
You can buy DICE in the first phase of the presale for $0.069 each, but with the presale having already raised $850,000/1,000,000, this price will soon increase. After the presale, you can claim your purchased tokens and use them in the casino, stake them or sell them for a possible profit.
Disclaimer: This article contains insights from independent authors and is not part of BitcoinMagazine.nl’s editorial content. This is not investment advice, please do your own research.
