- Solana has experienced huge price volatility lately, surging over the past week but then pulling back sharply amid continued selling by FTX-linked wallets.
- Several large transfers of Solana from FTX-linked addresses likely contributed to the token’s steep decline, with over $100 million worth of SOL moved in the past day alone.
- Despite the recent downturn, Solana remains up hugely for the week versus other major cryptocurrencies and the long-term outlook remains positive.
Solana has seen extreme price volatility in recent days. The token surged over the past week but has since pulled back sharply. This price action comes amid continued sell pressure from FTX-linked wallets.
Large FTX-Linked Transfers Depress Price
Several large transfers of Solana from FTX-linked addresses to major exchanges like Kraken and Binance likely contributed to the token’s steep decline. Over $100 million worth of SOL was moved in the past day alone. These transfers are part of the ongoing liquidation of FTX’s remaining crypto assets.
Broader Market Still Bullish on Solana
Despite the recent downturn, Solana remains up hugely for the week versus other major cryptocurrencies. The token has climbed nearly 240% over the past 7 days, dwarfing gains in assets like Bitcoin and Ethereum. The broader, long-term outlook remains positive.
Leveraged Traders Liquidated During Sell-Off
In the past 24 hours, over $10 million worth of SOL positions were liquidated. The majority of these were traders betting on further upside with leverage. The rapid reversal liquidated these overly optimistic speculators, exacerbating selling pressure.
The timing of the recent FTX-linked transfers seems suspicious given Solana’s massive run higher last week. However, the selling pressure from the exchange’s bankruptcy proceedings is scheduled in advance. For now, Solana remains stuck in limbo until the liquidation process concludes.