The Solana (SOL) chart is showing more and more alarming signals that threaten the altcoin with a potential correction. Given the lackluster performance of the broader market and the lack of investor support, a drop in SOL’s price to $100 looks like a likely scenario. Meanwhile, FTX plans new discounted SOL auction.
Solana faces selling pressure
Solana made another failed breakout attempt last week and has been falling ever since. Investor pessimism and market calm contributed to the decline in the price of the asset: this is evidenced by the relative strength index (RSI), which is below 40.
The Sharpe ratio also hints at a cooling of interest in the asset. The metric values dropped to -4.27%, which is the lowest in the last four months. If market participants do not return to action, SOL may fall further.
SOL Bearish signals: Price might fall to $100
Although Solana moved within an ascending triangle throughout April, the failure to break above the $134 level reduced the possibility of further rally to zero. In addition, a “death cross” has formed on the 12-hour chart, which is usually interpreted as a bearish signal.
Thus, the most likely scenario is that the SOL price will fall to the nearest support of $122. Losing this level could lead to a decline to the key level of $100, where the future fate of the altcoin will be decided.
FTX offloads another batch of Solana tokens at $85 to $110
FTX exchange is continuing to sell locked Solana tokens to chip away at its debt, with the latest auction fetching bids around $100, with Pantera Capital reportedly among the buyers. Another auction is planned for May 1st, with Figure Markets creating a special investment vehicle for participation.
These sales follow an earlier $1.9 billion sale of SOL, representing two-thirds of a larger lot. Despite these efforts, the FTX estate still holds an estimated $7.5 billion worth of locked SOL tokens, with the SOL price itself currently at $124 and down nearly 7% within the last 24 hours.
