Actually, it should be a good week for Solana. Due to the annual meeting in Lisbon, the crypto company was able to announce exciting news that could increase the price of SOL / USD. But now rumors about a company owned by Sam Bankman-Fried, the owner of the crypto exchange FTX, are causing prices to fall. The overview shows what exactly happened and how the price of SOL/USD could develop now.
Company FTX Alameda Research: Invests in SOL
The negative news that has been spreading about the FTX boss since yesterday does not mainly concern FTX itself, but Alameda Research, a company specializing in trading, which is also owned by Bankman-Fried.
According to the reports, Alameda Research is said to be having financial problems and bankruptcy is even in the room. This is surprising at first glance, as the company is said to have assets of nearly $15 billion as recently as June of this year.
However, these are reportedly not liquid funds, but tokens from various crypto companies. Alameda Research, on the other hand, is said to have liabilities of eight billion US dollars. Observers now fear that if the rumors are true and the company tries to sell its tokens, there could be a chain reaction similar to that of Celsius Network.
This news is so relevant for SOL buyers because Solana is included along with FTT, the native token of the crypto exchange FTX, in Alameda Research’s token portfolio. In the first reaction, not only did the FTT price drop significantly, but SOL/USD also recorded large daily losses. According to figures from coinmarketcap.com, the altcoin lost almost 12 percent in the last 24 hours and is now trading at around $31.
A panic reaction prompts SOL sales
It is not yet predictable what the consequences of the above mentioned events may be on Solana. So far, FTX owner Sam Bankman-Fried has not commented on the media reports. For example, Binance founder Changpeng Zhao announced via Twitter that he had sold all FTT tokens.
It is clear that there is an initial panic reaction in the market, which led to the rapid sales. Many customers are said to have withdrawn their entire holdings from the crypto exchange. However, some reported that withdrawals were not possible. This panic reaction is also likely due to general uncertainty among buyers of cryptocurrencies after the events at the Celsius Network, but also at Terra (LUNA).
As part of Binance’s exit from FTX equity last year, Binance received approximately $2.1 billion USD in cash (BUSD and FTT). Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ 🔶 Binance (@cz_binance) November 6, 2022
Solana partners with Google
The bad news doesn’t come at a good time for Solana. Because the company wanted to convey a spirit of hope and presented exciting news at a four-day conference, the Solana Breakpoint.
The most interesting thing is certainly a new partnership with Google, or more precisely with the search engine giant’s cloud service. For example, Google Cloud is going to build a Solana validator to allow its network to participate in the transaction validation process. In 2023, blockchain integration is expected to be complete and will allow users to launch a Solana node on Google Cloud.
In addition, Google Cloud for the Solana Network will analyze and index data, creating a serverless database that will give developers in the community easy access to the historical data they need for their development.
Solana’s own smartphone planned
As a second project, Solana announced the launch of its own smartphone at the Lisbon conference, which could be ordered in the coming year. A particular focus on the mobile phone should be that it can safely store private keys from a crypto wallet and make them inaccessible to hacker attacks. The Solana smartphone is said to be equipped with a chipset from Qualcomm for fast functions.
In addition, Solana introduced decentralized application storage and geo-NFTs to the Solana repository. Solana’s CEO introduced the Solana store in Miami in a video and said: “Now anyone can build their own Solana store anywhere. If you have a GeoNFT, you can redeem it 1-for-1 with exclusive rights to open a Solana store in that region.”
Solana’s new projects are all forward-looking and could also increase the price of SOL/USD in the long term. However, all this good news is overshadowed by the FTX headlines. The question is whether this news can damage the Solana course even more, or whether there is a good opportunity to buy SOL tokens after the correction at a cheaper price level.
SOL needs to maintain critical support – could fall to $5
On the daily chart of the SOL/USD rate, chart analysis shows that there is a very important support for the altcoin at $30. This mark should definitely be held to prevent a major correction in the short term. SOL/USD is currently trading at around $31 just above this support zone, so a renewed test is likely.
If there is this support, that would be a bullish sign in the short term and SOL/USD could try again in the next step to rise into the price region at $ 40. However, if support is lost , the likelihood is that SOL/USD could retest the annual lows around $25.
Also appearing rather bearish on a larger time frame of the SOL/USD chart is that the altcoin failed to confirm the breakout of a descending triangle above the resistance line that occurred on November 5, 2022.
This breakout was fake and SOL/USD has now fallen back into the chart pattern. A decision on guidance can be expected by early December at the latest. However, the descending triangle is a bearish chart pattern, so a further correction is likely.
The technical price target could even reduce SOL to $5 in the worst case scenario. The altcoin price was last very low in February 2021, before the big rally to prices up to $260 started.
The bottom line is that investors are advised to wait for a confirmed guidance decision here before making a large-scale purchase of SOL.
Another option: Buy D2T tokens in the presale
Anyone looking for another investment opportunity should take a closer look at the current D2T signal. Behind it is the new crypto company Dash 2 Trade, which offers traders a platform with crypto analysis, forecasts and trading signals.
In the future, users will be able to compare data on chain, establish trading strategies and stay up to date on the crypto market. D2T tokens can currently be purchased for only $0.0513 upfront. However, the contingent will sell out soon.