After Binance and FTX engaged in a word war on social media – and eventually making amends (well, sort of; Binance said today it’s buying FTX) – Solana got dumped violently.
Solana’s native token, SOL, is trading in the red across all time frames, as reported by CoinGecko, lending credence to the bearish claims.
When asked what a Binance deal for FTX meant for Solana, Ran Neuner of CNBC Crypto Trader and founder of Crypto Banter referred to SOL’s pricing issues.
In a tweet, he said:
“Solana [is] getting killed.”
He claims that the market has only recently realized that Binance CEO Changpeng Zhao “now owns 10% of the tokens and that he would prefer support the BNB chain than SOL.”
This is a devastating blow to SOL investors and traders. November has gone down in history as one of the worst months ever for Solana investors.
Solana getting killed. Market realizing that @cz_binance now owns 10% of the tokens and that he would rather support BNB chain than SOL. Also Solana just lost all the support and investment that FTX and @SBF_FTX were making in the ecosystem.
— Ran Neuner (@cryptomanran) November 8, 2022
Based on figures by CoinMarketCap, the coin registered more than 20% in weekly decline. At Coingecko, SOL is down 37% in the last seven days.
The Solana network did benefit from recent advancements on its network, but the market behavior of SOL over the past week has been very lackadaisical.
Negative Effects Of FTX On Solana
In a related development, the FTX’s native token, FTT, has had its value drop across all time scales as well, and is currently trading at $4.058. Meanwhile, after being rejected at the $38.26 area, SOL is now trading in the red at the $17.52 range, reflecting the same downward shift, courtesy of the negative impact that FTT’s drop has brought along.
Now, the charts also don’t look good for SOL buyers and sellers. A total turnaround of mood, as shown by the CMF signal, is only comparable to the market crash that occurred when Terra pulled the crypto market down.
Image: The Independent
Investors and traders are also receiving significant bear market indications from the RSI, making the current market environment considerably more precarious.
Despite this, the crypto community is still on the fence regarding a bullish reversal as the crypto market cap plummeted after BTC and other tokens fell due to the FTX brouhaha.
What Can Still Be Done
As the coin is currently in freefall, SOL bulls can position themselves at the 23.60 Fibonacci retracement level, which can serve as a launchpad for a possible relief rally in the near future.
However, even this potential support may remain hypothetical in the face of the ongoing drama between FTX and Binance.
With the decline of the cryptocurrency market, all we can do is hope. The latest price crunch is fueled in part by a high institutional fear that another LUNA implosion might occur, and current investor sentiment reflects this anxiety in the form of panic selling on the cryptocurrency market, which exerts more downward pressure on SOL.
As of this writing, SOL is trading at a new low of $16.55, which does not bode well for the coin’s investors and traders. If the opportunity presents itself, however, investors and traders can purchase the dip and potentially halt the current market decline.
SOL total market cap at $7.18 billion on the daily chart | Featured image from NBC News, Chart: TradingView.com