Solana Bull Run Hurdle: Will FTX Sell-Off Derail the Rally?

Worries have resurfaced within the crypto market regarding the sustainability of Solana’s recent bullish surge, fueled by speculation over potential liquidation risks tied to the troubled FTX exchange.

In the last 24 hours, Solana (SOL) established a new yearly high of $209.33, rallying more than 10% from $188. Over the past seven days, despite Bitcoin dragging down the crypto market, SOL stayed resilient, growing by over 40%.

Notably, Solana was one of the cryptocurrencies that ignited this cycle’s bull run in October 2023, when it doubled in value in under 30 days. The asset maintained the uptrend until January, entering a consolidation phase, ranging between $85 and $120, until this month, when it engineered another breakout. Emphatically, SOL has soared by over 64% from its price of $125 on March 1 to $209 today.

Solana 30-day price action | CoinMarketCap

However, market participants are again apprehensive of Solana’s new surge fading out, specifically seeing FTX as a threat to Solana’s uptrend. In a recent post on X, Bitcoin enthusiast Pledditor claimed that FTX holds a staggering 58 million SOL tokens “to sell.”

These tokens FTX supposedly holds are worth over $12 billion at the asset’s current prevailing market price. However, it is worth mentioning that FTX does not hold this amount of Solana tokens.

Data from the Solana blockchain explorer shows that FTX’s SOL holdings are almost entirely depleted. The bankrupt firm had liquidated a significant amount of the asset since late 2023 when SOL commenced the uptrend.

In particular, the Solana address identified as “FTX Cold Storage 1” has only 1,376.99 SOL worth $286,056. Meanwhile, FTX Solana cold storage two and three are empty with barely $1,00 worth of SOL tokens.
In other words, considering SOL’s massive daily trading volume, FTX’s $286K Solana barely poses any significant challenge to the asset’s uptrend. For instance, in the last 24 hours, SOL has seen over $10.65 billion. Moreover, FTX liquidating 1 million units of SOL last November never prevented the asset from soaring even further.

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