Coin Bureau host Guy is sending out a warning that a top Ethereum (ETH) competitor faces more downside risks in the FTX fallout.
According to the host, Solana will come under severe selling pressure when the beleaguered crypto exchange and the digital asset hedge fund Alameda Research dispose of their holdings of the Ethereum rival to pay back affected users and creditors.
“In any case, it’s clear that the demand for SOL is down, and it’s easy to understand why.
Some have begun to question Solana’s future. And this is in large part due to the massive amount of SOL that FTX and Alameda will be forced to sell when the time comes to compensate their creditors.”
Guy says that consequently Solana could go lower aided by the fact that the crypto market likely hasn’t bottomed out yet. Based on technical analysis, the Coin Bureau host says that Solana could fall by around 40% from current levels.
“To make matters worse, the bottom of the crypto bear market probably isn’t in yet. This means that SOL will go lower even without all the sell pressure from these entities.
Its long-term price chart suggests SOL could fall to $8. This would be consistent with the estimated percentage loss in other large altcoins.”
Solana is trading at $13.68 at time of writing, down by more than 50% over the past two weeks.
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Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
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