Solana Price Prediction as SOL Bounces 4% Overnight – Is the Sell-Off Over?

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Joel Frank

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Joel Frank

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Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...

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September 14, 2023 16:29 EDT

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Despite ongoing concerns about FTX’s planned liquidation of over $1 billion in Solana (SOL) tokens, which amount to roughly 16% of the cryptocurrency’s overall token supply, SOL has mustered a rally of more than 3% on Thursday.

Solana, the token that powers the layer-1 smart-contract-enabled Solana blockchain, was last trading around $19 per token, nearly 10% up from earlier weekly lows in the mid-$17s.

A judge approved bankrupt crypto exchange FTX’s request to liquidate its $3.4 billion in digital asset holdings earlier this week.

While panic about the mass liquidation of SOL tokens weighed heavily on the price recently, cooler heads appear to be prevailing, with Solana now up nearly 4% for the week.

That’s because FTX won’t be able to unload all of its Solana tokens onto the market in a massive dump that could cause a huge price crash.

Rather, the bulk of FTX’s Solana tokens are vested until as late as 2028.

Price Prediction – Is the Solana (SOL) Sell-Off Over?

In light of the near 10% rally from earlier weekly lows, traders are asking whether the Solana sell-off might now be over.

Solana has been in a downtrend since hitting highs for the year back in July above $31 per token.

Since mid-August, SOL’s price has been capped by a downtrend and the 21DMA.

If the cryptocurrency is able to break to the north of these resistance levels, the door would be opened for a retest of the 100 and 200DMAs around $21 and a key medium-term zone of support-turned-resistance around $22.0.

That could mean that, in the short-term at least, the sell-off might be over.

Alternatives to Consider

It’s always smart for crypto investors to hedge their bets, given the unpredictability of the market.

One excellent XRP (XRP) alternative that crypto investors should consider is a new coin being launched by Wall Street Memes, one of the internet’s largest retail investing communities.

Wall Street Memes, with its over 1 million following across various social media channels, has traditionally described itself as “the king of stonks” (stocks for the uninitiated), but is also looking to claim the crown of being “the king of crypto”, with the launch of its very own meme coin token $WSM.

The presale of $WSM has been a resounding success, with over $25 million raised, and dozens of major crypto industry influencers and analysts backing the coin for major success.

And investors are running out of time to get involved, with the presale scheduled to end in under 14 days.

Get in now on a token that could match or even surpass the likes of Pepe Coin, Dogecoin and Shiba Inu.

Buy $WSM Here

^{Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.}