Ethereum

Greed

Solana

Bitcoin

April

<p>The post <a href="https://coinpedia.org/news/ftx-sell-off-fears-trigger-5drop-liquidating-125m-shorts-whats-next/" rel="noopener noreferrer nofollow">FTX Sell-Off Fears Trigger 5%Drop, Liquidating $125M Shorts? What’s Next?</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>Solana, one of the prominent cryptocurrencies in the market, faced a significant 5% decline attributed to concerns<a href="https://coinpedia.org/news/ftxs-amended-plan-sparks-backlash-with-exculpatory-clause-and-repayment-changes/" rel="noopener noreferrer nofollow"> surrounding FTX’s</a> sell-off plans. However, this downturn was swiftly followed by a rebound, raising the possibility of liquidating approximately $125 million in short positions.</p>
<h2 class="wp-block-heading" id="h-solana-s-decline-in-open-interest">Solana’s Decline in Open Interest</h2>
<p>According to CoinGlass data, Solana’s SOL <a href="https://www.coinglass.com/pro/futures/Cryptofutures" rel="noopener noreferrer nofollow">witnessed a 40% decrease</a> in open interest (OI) over the last 30 days, plummeting to $1.78 billion on May 9. This decline in OI often signifies market uncertainty and a reluctance among traders to establish positions on the cryptocurrency.</p>
<p>Despite recent market turbulence, Solana has demonstrated a tendency to swiftly recover from dips, posing a threat to existing short positions. Over the past month, Solana has repeatedly rebounded by 5% within 24 hours after facing price declines.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr"><a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$SOL</a><br>Price inside resistance box, time to pay attention if it consolidates here or rejects<br><br>A rejection would pull it back to $148 and below that $142.5 possible<br>Next 24hours are crucial for market structure to hold uptrend or not <a href="https://t.co/bgbjE9e7Qx" rel="noopener noreferrer nofollow">https://t.co/bgbjE9e7Qx</a> <a href="https://t.co/9bqgd53631" rel="noopener noreferrer nofollow">pic.twitter.com/9bqgd53631</a></p>— Crypto𝔸ce (@CryptoAceBull) <a href="https://twitter.com/CryptoAceBull/status/1787710970086764992?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 7, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>For instance, on April 19, Solana saw a similar 5% drop before promptly rebounding to $157, just ahead of the Bitcoin halving on April 20. If Solana’s price were to climb back by 5% to its May 7 level of $157, it could trigger the liquidation of $125 million worth of short positions, adding volatility to the market.</p>
<h2 class="wp-block-heading" id="h-factors-behind-price-decline">Factors Behind Price Decline</h2>
<p>However, the recent drop in <a href="https://coinpedia.org/news/legendary-crypto-trader-predicts-solana-sol-breakout-to-360-soon/" rel="noopener noreferrer nofollow">Solana’s price can be attributed</a> to FTX’s announcement of plans to sell off assets to compensate victims of its collapse. Given that Solana comprises a significant portion of these assets, the announcement likely had a pronounced impact on investor sentiment.</p>
<p>Furthermore, broader market sentiment has experienced a decline, with the Fear and Greed Index <a href="https://alternative.me/crypto/fear-and-greed-index/" rel="noopener noreferrer nofollow">plummeting by 13 points</a> over the past 24 hours, reaching a score of 55 on May 9.</p>
<h2 class="wp-block-heading" id="h-solana-to-surpass-ethereum">Solana To Surpass Ethereum</h2>
<p>Recent reports suggesting that Solana could potentially surpass Ethereum in transaction fees have also influenced its short-term price movements. The potential for the Solana network to challenge Ethereum’s dominance in transaction fees is viewed as a positive indicator for Solana’s price prospects moving forward.</p>
<p>As of now, Solana is <a href="https://markets.coinpedia.org/solana/" rel="noopener noreferrer nofollow">priced at $143.81</a>, reflecting a slight 2.5% decrease over the past 24 hours. Despite this dip, Solana’s market capitalization has surged to $64 billion.</p>

FTX Sell-Off Fears Trigger 5%Drop, Liquidating $125M Shorts? What’s Next?

Table of Contents

CoinPedia News

Other articles published on May 9, 2024

Meme Coin Market Predictions for 2024 - 2030. Experts Compare Pepe, Floki, or Raboo

Binance Rejects Secret Crypto Settlement as Nigerian Authorities Detain Compliance Chief

BlockDAG (BDAG) Outshines Retik Finance: Investor Shift Fueled by Impressive Roadmap and Anticipa...

Binance Refutes Market Manipulation Claims

FTX Creditor Wants Debt Repayment In Crypto Instead of USD

Is Litecoin Set for a Price Surge?

Join our free newsletter for daily crypto updates!