Solana ($SOL ) has recently taken a hit alongside the broader crypto market, currently trading around $105, down over 5.5% in the last 24 hours. After reaching an intraday high of $111.85, it has dropped to a low of $101.19, highlighting increased volatility.
But there’s more going on beneath the surface that every SOL investor—or potential investor—needs to understand.
Key Developments
1. FTX Estate Liquidation Concerns
Starting May 30, the FTX estate will begin repaying creditors. Here’s the catch:
Over 61% of their $800 million on-chain holdings are in Solana.
This has raised red flags for a potential sell-off wave, as a large portion of these SOL tokens could hit the market. Short-term volatility and downward pressure are likely as a result.
2. Market-Wide Correction
Solana’s dip is also tied to a broader crypto market pullback. Bitcoin, for instance, is down nearly 28% from its highs in January, now hovering around $79,100.
3. Technical Outlook: A Bullish Divergence?
Despite the bearish sentiment, analysts have identified a bullish divergence on Solana’s daily chart—a possible sign of trend reversal or upcoming recovery.
Short-term resistance to watch: $120
Key support levels: $98–$101
Long-Term Perspective
Not all is doom and gloom.
Asset manager VanEck still holds a bullish long-term view, projecting that SOL could reach $520 by the end of 2025, driven by continued adoption, network upgrades, and ecosystem growth.
Investor Takeaway
• Short-term caution is warranted, especially with FTX-related sell pressure on the horizon.
• Opportunities may arise for long-term investors if prices pull back further.
• Stay focused on technicals, on-chain developments, and macro trends—not just headlines.
Solana remains one of the most active and scalable blockchains in the space. But like all investments, timing, research, and risk management are everything.
Are you holding SOL, waiting for an entry, or planning to exit?
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