Recent revelations about the collapse of the crypto exchange FTX have shaken the Solana price. A whistleblower, claiming to have insider knowledge, alleged that the now-bankrupt company holds a substantial amount of Solana tokens—up to 8% of the total SOL supply.
Potential for a Major Sell-Off
If these claims are accurate, this would amount to around 46.5 million SOL tokens, valued at approximately $7 billion based on the current market price of $155 per token. A crypto user known as Wise Advice shared on social media platform X, “I’m not saying Solana will go to zero, but if FTX starts selling these tokens on the open market, it could significantly drive down the price of Solana.”
Following this news, Solana’s price fell below the critical $160 support level, dropping more than 9% over the past two weeks and nearly 4% in the last 24 hours as rumors about FTX’s hidden SOL holdings spread.
Solana Price Faces Potential Decline
This news follows the FTX estate’s earlier sale of discounted SOL tokens to repay creditors, following the exchange’s collapse. Two months ago, it was reported that the estate sold $2.6 billion worth of SOL at around $102 per token. Venture capital firms such as Pantera Capital and Figure Markets acquired significant portions of this discounted SOL. However, these tokens are under a multi-year vesting schedule, mitigating their immediate impact on the market.
Conversely, the alleged hidden stash of SOL, if true, could have a more immediate and substantial impact on Solana’s price. The potential introduction of $7 billion worth of Solana tokens into the market could exert considerable selling pressure, potentially disrupting the cryptocurrency’s bullish outlook.
Future Price Movements and Analysis
It is important to note that these claims are currently unconfirmed by FTX’s bankruptcy estate, and there has been no official announcement regarding the sale of these tokens to repay creditors.
Crypto analyst Pratty Crypto has noted several technical indicators suggesting further potential downside for Solana in the near term. Pratty Crypto argues that Solana is currently facing multiple factors indicating a possible drop towards the $140 level. These include trading below the previous quarter’s midpoint, testing a key quarterly open level, and retracing 62% of its recent price increase.
Furthermore, Pratty Crypto warns that if Solana’s price continues to move deeper into the $130-$150 range, it may struggle to maintain this level, potentially leading to more significant losses.
