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The FTX exchange is preparing to sell more Solana. Will it fall further?

The FTX bankruptcy estate is preparing for a crucial step by auctioning a large block of Solana (SOL) tokens. This strategy is part of the liquidation process of FTX that began after its collapse in November 2022.

The upcoming auction, which differs from previous fixed-price sales, is a strategic shift that signals possible changes in market dynamics.

Will the cryptocurrency community participate in the Solana auction?

Previously, between 25 and 30 million tokens were sold GROUND, which generated net profits of approximately $1.9 billion. They were priced at $64 each, a significant 60% discount from the then market price. However, the discount came with a trade-off, i.e. buyers had to lock in SOL for four years.

“Essentially, you are trading time for a discount: you have to lock up your capital for four years, but you will pay much less for the tokens,” said Eva Wing of Caladan.

The decision to opt for auctions this time could increase competition, which could affect Solana's market price. Confirm Mike Cagney, CEO of Figure Markets, announced the auction, but the final details are still under wraps.

Read more: Three different ways to buy Solana Coin

Figure Markets, led by Cagney, is developing a special purpose vehicle (SPV) to make it easier for the cryptocurrency community to participate in auctions. This mechanism is designed to attract both US and non-US accredited investors. This allows them to participate in community consensus to set bid prices and manage subsequent investments.

The auction format could increase auction enthusiasm, with potential implications for Solana pricing trends.

Currently, Solana’s price trajectory is seeing upside potential. After reaching a high of $210 on March 18, Solana price dropped significantly by over 44%, reaching its lowest level of around $116 on April 13. Despite this, the stock rebounded, with its price increasing almost 30% from that decline.

This recovery is crucial as Solana tests key resistance levels near $156. This level is important because it represents a major Fibonacci retracement point.

Solana (SOL) Price Performance
Solana (SOL) Price Performance. Source: Trading View

If Solana manages to maintain its position above $156, it could witness a 22% upside to around $185, benefiting from the 0.786 Fibonacci level. Conversely, if it fails to overcome this hurdle, the price could find support at $145.56.

Read more: Solana (SOL) Price Forecast for 2024, 2025, 2026, 2027

He saidDan Borovec of Rollbeat: “Solana at $148 is incredibly undervalued. »

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