The crash of the crypto exchange FTX and the trading company Alameda Research with Sam Bankman-Fried hit not only the FTT token of the platform itself, but also Solana investors in particular. At the time of publication, the SOL/USD rate has slipped to just $12. Just six months ago, buyers of the cryptocurrency had to put more than 100 dollars on the table per token. And anyone who bought SOL a year ago paid even $250 for coins. Solana has had an incredible price reduction of over 95 percent. So now is the perfect time to buy SOL?
FTX crash: SOL buyers hit particularly hard
The reasons for the last price drop in SOL/USD from almost 40 to 12 USD are obviously related to the events related to FTX. Although Solana may not have been directly involved in the accident, FTX did. and Alameda Research invested heavily in SOL. Instead of hedging their liquidity through dollars, government bonds or other less volatile assets, Alameda Research invested primarily in FTT and SOL tokens. But now due to the collapse of the Sam Bankman-Fried corporate network much of the capital that flowed to SOL has been disrupted.
This factor, but also the general panic in the market, has meant that SOL is currently as cheap as it was in March 2021. What are the signs that the correction is over? Or why perhaps the bottom has not been reached yet?
In a few minutes Tether will coordinate with a 3rd party to do a chain swap, changing from Solana to Ethereum ERC20, for 1B USDt. the # title the total supply will not change during this process.
Learn more about chain swaps ⬇️https://t.co/abfgnELSvi
— Tether (@Tether_to) November 18, 2022
Stablecoin Tether transfers $1 billion worth of SOL tokens to Ethereum
There is currently bearish news for Solana from Tether. The company behind the most famous stablecoin USDT has withdrawn $1 billion worth of tokens from Solana and converted them to Ethereum. Apparently, Tether seems to have lost faith in Solana and sees more security in buying ETH than buying SOL.
Tether commented on the transaction, saying that the FTX/Alameda failure was probably a turning point in the history of the cryptocurrency industry. Not only was it one of the world’s biggest financial failures, but it set up a chain of leveraged failures that ran through the industry. However, Tether also clarified that USDT issued on Solana is the same as USDT issued on any other chain. The token only represents demand for $1 of Tether reserves and collateral. Alameda’s heavy holdings in Solana do not affect the fundamental dynamics of how USDT and USDT issuance work.
The amount of USDT circulating did not change as a result of the sale of SOL. A redistribution in favor of ETH just happened. However, one could ask why Tether leaves its billions of dollars in liquidity in volatile cryptocurrencies at all and is not 100 percent dependent on dollars or government bonds. After the FTX crash, Tether also briefly lost its peg to the dollar. But those who feared a possible price drop, as with the UST stablecoin from Terra (Luna), can now breathe a sigh of relief. Currently, Tether has found its stability again.
However, it seems the understandable step that a stable does not want to hedge against a sick base like Solana nowadays. The price of Ethereum is much more stable here and is currently still well above the lows since June this year.
Solana: Google Collaboration overlaid by FTX crash
But there is also hope among SOL buyers that the signal will bounce back. Shortly before the FTX crash, the company announced some exciting projects for the future. There is a new cooperation with Google and the Solana smartphone should also be on the market, as reported by kryptoszene.de .
Barring more bad news spreading throughout the crypto industry, the bearish market outlook after the FTX crash may soon be over and more focus may be placed on the future potential of blockchains like Solana and their further development .
A short-term price forecast for SOL/USD can be made with the technical chart analysis. Showing that SOL/USD recently broke from a bearish descending triangle. However, the technical price target of around USD 1.7 was far from being achieved. Is it really possible that it’s going down that far?
A run to $150 could be triggered by a return to $28
It could also be a fake out with SOL/USD coming back into the chart pattern. However, the cryptocurrency would have to cross the resistance line at USD 28 again by Christmas at the latest. At this time, the mentioned chart pattern is terminated. There is also hope that SOL/USD has lost support, but so far there has been no retracement as new resistance. This is one of the most important ground rules for a valid chart pattern. If Solana rallies again, a bullish breakout to the upside could quickly send SOL price back into the $50-$60 range.
Another chart pattern seen on the SOL/USD daily chart could also suggest a bullish reversal. The altcoin price has been falling since September 2021, which makes technical analysis tend to go up. For this, however, the price would have to break through the falling resistance line, which is also currently at $28. SOL/USD failed its last attempt on November 7th and is now struggling not to lose the lower support of the formation. The technical price target on a breakout to the upside could bring Solana’s price back to the $150 areas. A decision regarding the direction of that formation can be expected by the end of January 2023 at the latest.
Digital Coin Price analysts expect SOL to fall below $11 this year. However, an upward trend above $30 is expected in 2023. In the long term, according to the forecast, the price could rise again to more than 200 dollars.
Another option: Buy IMPT tokens for about 2 cents
A new project on the Ethereum blockchain that analysts believe has great potential is called IMPT. Behind it is a new platform that addresses the topic of climate protection.
IMPT buyers can trade with carbon credits and thus contribute to CO2 neutrality through their investment. Due to the high demand for IMPT tokens, the stock was already sold out early in the first phase of the pre-sale. Phase 2 of the presale is currently running at a preferred price of $0.023. This group could also be sold out soon.
An offer that matches your criteria…
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