- FTX has been granted permission to liquidate $3.4 billion in crypto assets.
- Galaxy Digital will manage FTX’s asset divestment, capping weekly sales at $100 million.
- Solana’s price and trading volume increased following the FTX liquidation news.
The crypto industry is currently abuzz with discussions about the fallen digital asset exchange, FTX. The platform has been granted permission by Judge John Dorsey, who presides over its bankruptcy case, to liquidate billions of dollars worth of crypto assets. This decision by the U.S. Bankruptcy Court for the District of Delaware paves the way for FTX to sell $3.4 billion in assets, including prominent cryptocurrencies such as Solana, Ethereum, and Bitcoin.
FTX has engaged Galaxy Digital, led by Mike Novogratz, to manage the divestment of their assets, a strategy first proposed in August. As per the strategy, FTX will cap its weekly token sales at $100 million but may raise this cap to $200 million for specific tokens.
Upon hearing this news, Bitcoin saw a slight increase of 1.28% in the last 24 hours, even amidst the current bearish market sentiment. Conversely, Solana
The bearish mood is prevailing
It should be highlighted that Solana experienced a downward trend over the past month, witnessing a 24% drop in value. The recent uptick in SOL’s price could be interpreted as a recuperation period.
Examining the daily price fluctuations of SOL, it is clear that the cryptocurrency is presently experiencing a bearish trend, even with the recent increase. The 50-day exponential moving average (EMA) is $21, which signifies the ongoing bearish mood. Furthermore, the daily relative strength index (RSI) is 39, indicating that the asset is approaching the oversold zone.
Currently, according to CMC data, SOL is priced at $18.68. A drop below the support level of $17.5 could lead to a further decrease in value. Conversely, pushing the price above the resistance level of $20.5 could trigger a new upward trend.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
