On September 13th, the cryptocurrency exchange FTX received court approval to liquidate a portfolio of cryptocurrency holdings worth $3.4 billion, including Bitcoin (BTC), Solana (SOL), and Ethereum (ETH).
This development could potentially have a negative impact on the cryptocurrency market because selling such a large investment portfolio could lead to further market liquidation. As a result, it may trigger a price drop in the leading cryptocurrencies that are part of the portfolio.
Recent reports from the exchange indicate that the investment portfolio also includes assets such as XRP, Wrapped Bitcoin (WBTC), and Aptos (APT). The increased liquidity of these assets could make traders apprehensive and uncertain about price stability.
As predicted, right after FTX received the green light from the federal judge to liquidate its cryptocurrency holdings, the price of SOL sharply declined from $18.50 to $18 within minutes. It’s standing firm against the resistance level related to the FUD (Fear, Uncertainty, Doubt) surrounding SOL’s major holdings.
According to data as of August 31st, FTX holds SOL worth $1.162 billion, making the company one of the largest shareholders of Solana.
Previously, there were predictions that the downward trend in SOL’s price could extend to the support level of $14.49. However, when looking at the chart below, it can be observed that the Relative Strength Index (RSI) is showing an upward trend as it moves forward, indicating that a group of informed investors may be using FUD as an opportunity to accumulate.
Increased buying pressure could potentially lead Solana to close decisively above the mid-range at $18.42, before pushing higher to break out of the technical downtrend at $20.23 or, in more ambitious scenarios, test the resistance level at $21.92, which was last tested at the end of August.