Solana Price Surge Despite Court’s Approval for FTX to Liquidate Its SOL Holdings

Solana (SOL), a prominent smart contract and DeFi ecosystem boasting over $1.5 billion in stablecoin market capitalization and approximately $305 million in total value locked (TVL), has garnered significant attention in light of the substantial FTX liquidation order.

Solana’s price is hovering around $18.77 during the early London market hours on Thursday, representing a roughly 5.3 percent increase. Speculation regarding Solana’s price movement has intensified over the past few hours, with its 24-hour average trading volume surging by approximately 43 percent to reach about $448 million.

Solana FTX Deal

Solana’s FTX Deal On Wednesday, current officials at FTX, led by CEO John Ray III, received court approval to liquidate the exchange’s crypto holdings as part of an effort to repay creditors. According to FTX documents, the distressed crypto exchange holds approximately $3.4 billion in digital assets, with Solana constituting the majority at about $1.2 billion. Notably, the fact that there is a willing buyer to provide FTX with a secure avenue for liquidating its Solana holdings represents a positive development for the DeFi ecosystem.

SOL Price Analysis

SOL Price Action Solana’s price has experienced a year-to-date gain of approximately 29 percent but has faced significant resistance in surpassing levels seen prior to the FTX situation. The closure of FTX and its association with Solana is anticipated to eliminate short-term uncertainties and potentially catalyze the second phase of the bear market rally, aiming for the next macro resistance zone ranging from $40 to $50. However, for Solana’s bullish momentum to continue, it is imperative that they convert the weekly 50 Moving Average into a support level.