Solana

Following the collapse of FTX, Solana, a prominent cryptocurrency, experienced significant selling pressure. Alameda Research, an entity affiliated with FTX, held a substantial amount of SOL tokens, leading to concerns about Solana's recovery. Recent data from Delphi Digital reveals that the situation may be more complex than initially believed, as SOL's supply and liquidity face potential challenges.Locked Stake and Bankruptcy Proceedings:Alameda Research holds a locked stake of 8.2% in the Solana cryptocurrency supply, equivalent to 45 million SOL tokens valued at $45 million. These tokens are undergoing bankruptcy proceedings and are expected to be unlocked by mid-2025. This locked stake raises concerns about the future impact on SOL's supply and liquidity.FUD and Whale Selling Activity:The circumstances surrounding the locked stake contribute to fear, uncertainty, and doubt (FUD) surrounding SOL. Additionally, Delphi Digital reported that a significant whale, potentially an early investor in Solana, has been gradually selling off a substantial portion of their holdings using time-weighted average price (TWAP) orders. This selling activity further pressures Solana and contributes to the downward price trend.Price Decline and Market Sentiment:Solana's price has experienced a decline, currently trading at $13.20, a 44.70% drop since testing the $24.02 resistance level on April 30. This, coupled with a notable decrease in the Relative Strength Index (RSI), indicates a lack of positive momentum and potential market weakness for Solana. The Chaikin Money Flow (CMF) indicator, which measures buying and selling pressure, has also declined, suggesting a decrease in buying pressure and potentially signaling bearish sentiment.Reduced Trading Volume and Market Activity:In addition to the price decline, SOL's trading volume has also fallen, indicating reduced market activity and liquidity. These trends further contribute to the challenging environment faced by Solana in the current market.Development Activity and Future Potential:Despite these challenges, Solana's development activity has continued to rise. This increase suggests that new updates and upgrades could be on the horizon for the Solana network, potentially attracting new users and enhancing the value and utility of the SOL token.Solana is grappling with significant selling pressure following the collapse of FTX, with Alameda Research's locked stake and the whale selling activity exacerbating the situation. The decline in price, coupled with reduced trading volume and market activity, reflects a challenging period for Solana. However, the network's growing development activity holds promise for future improvements and the potential to revitalize the value and utility of the SOL token.

Solana Faces Selling Pressure Amidst FTX Collapse: Impact on SOL Supply and Market Sentiment

ItsBitcoinWorld

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