Crypto traders are discussing the potential impact of FTX selling its $1.06 billion Solana stake on the price of SOL. However, some traders believe that the selling pressure is overblown, as the majority of FTX’s SOL stake is locked until 2025-2028. Additionally, the Solana Foundation has revealed that a significant portion of FTX’s SOL tokens are locked until 2027. The selling pressure will be distributed over time, and the current spot volume indicates that FTX’s selling pressure represents a small percentage. There is also the possibility of a short squeeze, as funding rates for perpetual swap contracts on SOL have plunged to negative levels, indicating a crowding of short orders. However, negative funding rates have resulted in flat price returns in the past. Technically, SOL is facing resistance from a descending trendline and is trading below its 50- and 200-day moving averages. Overall, it is important for readers to conduct their own research and make informed decisions when it comes to investments in cryptocurrencies.
Summary:
– Crypto traders are discussing the potential impact of FTX selling its $1.06 billion Solana stake on the price of SOL.
– Some traders believe that the selling pressure is overblown, as the majority of FTX’s SOL stake is locked until 2025-2028.
– The Solana Foundation has revealed that a significant portion of FTX’s SOL tokens are locked until 2027.
– The selling pressure will be distributed over time, and the current spot volume indicates that FTX’s selling pressure represents a small percentage.
– There is also the possibility of a short squeeze, as funding rates for perpetual swap contracts on SOL have plunged to negative levels.
– However, negative funding rates have resulted in flat price returns in the past.
– Technically, SOL is facing resistance from a descending trendline and is trading below its 50- and 200-day moving averages.
– It is important for readers to conduct their own research and make informed decisions when it comes to investments in cryptocurrencies.