Latest Solana (SOL) News: FTX's $1 Billion Liquidation Impact

FTX's Ongoing Liquidation and Solana's Market Challenges

In the latest Solana (SOL) news, reports indicate that FTX possesses more than $1 billion worth of Solana tokens available for sale. This situation poses a potential threat to Solana's market valuation, particularly as on-chain metrics reveal shrinking engagement in the ecosystem.

Recent Unstaking Activities

According to blockchain analytics from LookOnChain, both FTX and Alameda Research have unstaked considerable parts of their Solana holdings recently, totaling 530,000 SOL (around $71,000) over the last three months, translating to monthly averages of 176,700 SOL, roughly $23.5 million.

Impact of FTX's Actions on Solana Pricing

Despite the changes in ownership, an impressive 7.06 million SOL, worth about $945.7 million, remains staked. Following FTX's collapse in November 2022, which led to a significant drop in SOL prices, selling pressures from the exchange could amplify existing volatility.

Regulatory Scrutiny and Market Reactions

As FTX's situation unfolds, scrutiny from federal authorities is intensifying, with former Alameda CEO Caroline Ellison facing sentencing on September 24. This backdrop raises questions about the future trajectory of Solana amidst its shifting market landscape.

Technical Analysis of Solana's Price

Analysts observe that Solana's price is at a critical juncture after losing support at the 200-day exponential moving average (EMA). Current trading hovers around $127, with fears surrounding a potential fall below $126, which could propel the price into the $92 to $110 bracket.