Popular altcoin Solana (SOL) is down more than 25 percent in light of the shocking news on crypto exchange FTX. Meanwhile, a liquidation warning came from market experts for Solana. Here are the details…
Altcoin Solana is down more than 25 percent
Priced above $32 on Tuesday, the SOL/USD pair has suffered from the selling pressure in the crypto market. Besides that, Sam Bankman-Fried fell for being associated with FTX and Alameda Research. According to analysts, one of the reasons for SOL’s decline is Sam Bankman-Fried’s $1.2 billion share of the token purchased through Alameda. It hit 24-hour lows with news that FTX is in trouble and Binance is taking action to help.
Ran Neuner, founder of Crypto Banter, who is a crypto trader on CNBC, pointed to SOL’s price woes regarding what the Binance settlement for FTX means for Solana.
“Solan is getting killed,” he tweeted as crypto prices in the market plummet. According to the analyst, the market understood that Binance CEO Changpeng Zhao “now owns 10 percent of the tokens” and prefers to support BNB Chain instead of SOL. “Solana has lost all the reinforcement and investment that FTX and SBF have made in the ecosystem,” Reuner said.
Whales face liquidation
Meanwhile, according to information provided by Solend, a large Solana whale is in the midst of liquidation with 2,450,418.5 SOL tokens as collateral and over 44 million USDC in debt. It is thought that the slowness of the Solana network is behind the liquidation of this whale not taking place now. According to the explanations, the slowness in question is due to an oracle adjustment. According to Coinalyze statistics, almost $22 million long status liquidation has occurred in the last 24 hours. It is argued that Alameda sold its SOL holdings and bought FTT to stop the falling price of FTX tokens.
According to statistics compiled by Coinglass, the total value of assets liquidated in the last 12 hours reached $294.78 million as the market hit bottom. Also, a whale transferred FTT to FTX at the cost of $44 million. This situation got tired of Binance’s transfer. Koindeks.com As we have also reported, exchange CEO Changpeng Zhao denied the claim. In the middle, data from Santiment revealed a sharp increase in SOL volume as its price fell. According to analysts, this was a negative signal that triggered the bearish trend.