Solana’s price has increased by an astounding 80% in the last month. The large increase in value has sparked apprehension among the cryptocurrency community, mainly because of substantial withdrawals made by FTX exchange.
The price of $SOL has increased by ~80% in the past month.
And #FTX transferred 1.38M $SOL($56M) out to sell as the price increased.
Just 1 hour ago, FTX unstaked and withdrew 1.6M $SOL ($65M).
The 1.6M $SOL may be transferred out one after another in the following days. pic.twitter.com/cYoWBY3aFL
— Lookonchain (@lookonchain) November 1, 2023
Contents
FTX’s Significant Withdraws
A significant 1.38 million SOL, or $56 million, has been transferred by the cryptocurrency exchange FTX as SOL’s value has increased. There were concerns about the move since such a large withdrawal implied that FTX might be trying to profit from Solana’s recent price increase.
Withdrawal and Prospective Issues
Concern has increased since FTX unstaked and withdrawn a further 1.6 million SOL, or roughly $65 million. Numerous traders are conjecturing about FTX’s future plans in response to this action. This large volume of SOL might be transferred out one after another in the next few days, which could result in an increase in supply for the market.
Demands Profit-Taking
Some traders suggest grabbing profits while they can because of FTX’s significant withdrawals as well as the expectation of additional withdrawals. Calls for prudence and responsible trading methods have arisen from the concern of an imminent market “dump”.
Final Thoughts
With its astounding price rise, Solana has certainly attracted a lot of curiosity and attention from the cryptocurrency world. But there are concerns regarding the short-term durability of the token’s price given FTX’s significant withdrawals and the possibility of more to come.
Investors and traders must be cautious and weigh the possible hazards associated with investing in any asset that sees quick gains. Although Solana’s ecosystem and technology have received recognition, it is important to exercise caution when navigating the cryptocurrency world because market dynamics are still prone to change. It is recommended that traders be vigilant, stay informed, and carefully evaluate their strategy in light of the changing circumstances.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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