Here’s Why SOL, MATIC Could Be Facing Another Fall Soon

• FTX exchange is preparing to liquidate assets including Solana and Polygon.
• FTX may sell around $650 million worth of Solana (SOL).
• Polygon (MATIC) could drop below $0.50 due to FTX’s liquidation.

Despite experiencing challenging times in recent weeks, the cryptocurrency market could face another significant downturn. This is because FTX, the exchange that significantly impacted the market in 2022, is preparing to liquidate some of its assets, including Solana and Polygon .

Crypto Town Hall, a podcast focused on cryptocurrency, has reported that FTX may soon sell around $650 million worth of SOL. The exchange also holds other cryptocurrencies, such as Bitcoin , Ethereum , and Dogecoin , among others, which could be sold as well.

FTX’s largest holding was SOL, while MATIC was the least at $39 million. It’s not unexpected that SOL was the leading asset. This can be attributed to Sam Bankman-Fried, the former CEO, who openly expressed his preference for this token during his tenure at the active exchange.

Consequently, SOL was significantly impacted by the downfall of FTX, being one of the cryptocurrencies most affected. Therefore, there is a potential for another instance of capitulation to occur.

SOL’s Steadfastness Persists

As of when this was written, SOL was trading at $18.28 due to heightened sell-off pressure, as indicated by the 4-hour chart. SOL has been trying to reach the $20 mark since September 8, but the resistance level at $19.58 has prevented it.

Bulls were unaware that sellers intended to drop the price to $18.16. Yet, the Accumulation/Distribution (A/D) line had escalated to 15.17 million. An upward A/D trend and a falling price indicate a diminishing seller strength. Therefore, this divergence implies a surge in demand, suggesting that SOL’s price may stabilize.

Nonetheless, there is a high probability that the A/D will relinquish its upward trajectory if FTX proceeds with liquidation. Consequently, SOL could potentially depreciate to a value as low as $15.

MATIC: Another Dip in the Offing?

The market structure of MATIC closely resembled that of SOL. As of the current update, extensive sell-offs were occurring.

MATIC experienced a decline to $0.52 due to certain factors. Furthermore, past efforts to increase to $0.55 have consistently encountered resistance at $0.54.

Additionally, a disparity was observed between the SOL and MATIC conditions on the graphs. SOL demonstrated some level of demand, unlike MATIC. According to the On Balance Volume (OBV) indicator, there was a decline in MATIC’s volume pressure.

Generally, an increasing OBV may result in elevated prices. Hence, the declining OBV observed in the case of MATIC indicates a potential downward trend.

Regardless of FTX’s liquidation timeline, MATIC’s value could drop below $0.50. The situation could further deteriorate for the token post-liquidation. However, SOL might stabilize at around $18 unless FTX will offload the token shortly.