SOL and MATIC are among the tokens that FTX may liquidate this week or next.

  • Before liquidation, SOL could continue to consolidate around $18 unless selling pressure appears.

  • On the other hand, MATIC, as indicated by OBV, could fall below $0.50.

Despite the tough times over the past few weeks, the cryptocurrency market may be on the verge of another decline. This comes as the FTX exchange, which crashed into market failure in 2022, is preparing to liquidate some of its assets and Solana (SOL) and Polygon (MATIC) are involved.

According to a crypto podcast, FTX could soon sell approximately $650 million in SOL. Other assets held by the exchange that can also be traded include Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE) and many others. Although SOL was FTX's largest asset, MATIC was the smallest at $39 million. Unsurprisingly, SOL was the most significant cryptocurrency among others. This is because former CEO Sam Bankman-Fried (SBF) never hid his admiration for the coin when the exchange was still active.

For this reason, SOL was one of the cryptocurrencies deeply affected by the FTX collapse. Thus, it is possible that another capitulation scenario is on the way.

SOL Continues to Remain Resilient At the time of writing, SOL was trading at $18.28 amid increasing selling pressure as shown on the 4-hour chart. Since September 8, SOL has been trying to rise to the $20 area. However, resistance at $19.58 prevented this. Few of the bulls knew that sellers had other plans - to drop the price to $18.16. However, the accumulation/distribution (A/D) line rose to 15.17 million. An increase in A/D against the backdrop of a price decline indicates the weakening strength of sellers. Therefore, this divergence signals an increase in demand, which means the price of SOL will stabilize. However, it is possible that A/D will lose control upward if FTX finally goes through with the liquidation. As a result, SOL could fall to $15.

Another downturn for MATIC?

MATIC's market structure was similar to SOL's. At the time of writing, widespread selling has seen MATIC fall to $0.52. In addition, previous attempts to rise to $0.55 faced failures at $0.54 at various times.

Moreover, the differences between the SOL and MATIC conditions were noticeable in the graphs. While SOL had some demand, MATIC did not. According to On Balance Volume (OBV), the volume pressure on the MATIC was decreasing.

Typically, a rising OBV can lead to higher prices. Thus, a falling OBV in the case of MATIC indicates a possible downward move. In conclusion, MATIC may fall below $0.50 regardless of the FTX liquidation period. After liquidation, the situation for the token may worsen. But SOL could continue to consolidate around $18 if FTX sells the token in the near future.

In general, the market has been shaking quite well lately, but I told everyone about this before! I talked about the fall of BTC and other altcoins. Everything was in Telegram: CryptoXVT. The publication is sponsored by my channel.