Fun

Solana drops 5% on new FTX plan, quick rebound to wipe $125M shorts

News Feed - 2024-05-09 03:05:14

Ciaran Lyons2 hours agoSolana drops 5% on new FTX plan, quick rebound to wipe $125M shortsIf Solana recovers as quickly as it has in recent times, approximately $125 million in short positions will be liquidated.1061 Total views14 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksSolana dropped 5% in a day amid further FTX sell-off concerns, and current trader positions suggest $125 million is in jeopardy if it were to bounce back as it has in recent times. 


The price decline comes alongside a 40% decrease in open interest (OI) of Solana’s (SOL) over the last 30 days, down to $1.78 billion on May 9, according to CoinGlass data.


The steep decline in OI typically signals that traders are uncertain about the cryptocurrency and are not confident in taking positions on the asset’s price.


However, Solana has a recent knack for recovering quickly from its dips, which, as of now, could jeopardize over a hundred million dollars in short positions.


Over the past 30 days, Solana has seen periods where its price has dipped and recovered 5% within 24 hours.


On April 19, Solana saw a similar 5% decrease before quickly recovering to $157 within hours, just ahead of the Bitcoin halving on April 20.


Similarly, if Solana’s price rises 5% to regain its May 7 price of $157, $125 million in short positions will be liquidated.Solana has a significant amount of short positions at risk if it rebounds back to $157. Source: CoinGlass


Just days before Solana dipped on May 7, pseudonymous crypto trader CryptoAce told his 13,400 followers on X that Solana’s price was “inside the resistance box” and accurately predicted that a rejection would lead to a drop toward the $142.50 level.


However, Solana’s most recent fall may be attributed to FTX announcing on the same day that it had adequate funds to repay victims of the exchange’s collapse once it sold off its assets — a large portion of those being Solana.


Related:Solana-to-Bitcoin cross-chain bridge aims for Q3 2024 launch


This comes alongside a drop in the overall cryptocurrency market sentiment, as the Fear and Greed Index score fell by 13 points over the past 24 hours, dipping to a score of 54 on May 9.


However, new findings in the ongoing competition between Solana and Ethereum may have also impacted its price in the short term.


On May 8, Cointelegraph reported on claims that the Solana network could be on track to overtake the Ethereum network in transaction fees, which could be a positive news indicator that Solana needs for a price spike.


On May 7, Solana’s total economic value of $2.8 million was close to Ethereum’s $3.1 million total economic value.


Magazine:What do crypto market makers actually do? Liquidity, or manipulation


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Cryptocurrencies# Altcoin# Cryptocurrency Exchange# Solana# FTXAdd reaction

News Feed

Ethereum Blockchain Migrates to Proof of Stake After Completion of The Merge
Ethereum Blockchain Migrates to Proof of Stake After Completion of The Merge The Ethereum blockchain officially migrated to the proof-of-stake (PoS) consensus mechanism as the anti
Argentinian Tax Authority Will Be Able to Confiscate Digital Wallets to Collect Tax Debts
Argentinian Tax Authority Will Be Able to Confiscate Digital Wallets to Collect Tax Debts The Argentinian Tax Authority (AFIP) will now be able to confiscate the assets that taxpay
Crypto Firm Wyre Reportedly Shuts Down After Canceled Bolt Acquisition, CEO Claims Firm Is Just ‘Scaling Back’ Operations
Crypto Firm Wyre Reportedly Shuts Down After Canceled Bolt Acquisition, CEO Claims Firm Is Just ‘Scaling Back’ Operations According to several reports, Wyre, a cryptocurrency p
Devs Debate Using USDC for Collateral After DAI Stablecoin Faces Liquidity Issues
Devs Debate Using USDC for Collateral After DAI Stablecoin Faces Liquidity Issues Since March 12, the Makerdao community has been struggling with the stablecoin DAI which has bee
Markets blow up, so ‘the best prep is to have a plan to buy fear and sell euphoria’ — Veteran trader
Ray Salmond9 hours agoMarkets blow up, so ‘the best prep is to have a plan to buy fear and sell euphoria’ — Veteran traderPear Protocol founder HUF says “a limited pool of capital constantly rotating between narr
Cardano Subsidiary Emurgo in Partnership With Pan-African Venture Studio
Cardano Subsidiary Emurgo in Partnership With Pan-African Venture Studio Emurgo, the investment arm of Cardano, has partnered one of its subsidiaries with Adanian Labs, a pan-Afric
Yashu Gola1 hour agoOne year on: Top 3 gainers after the ‘FTX crash bottom’Bitcoin has more than doubled in price since the FTX collapse in November 2022, but several other coins, such as Chainlink, have seen even bi
Ethereum Network Fees Jump Above Bitcoin Transaction Fees for Two Weeks Straight
Ethereum Network Fees Jump Above Bitcoin Transaction Fees for Two Weeks StraightThis week digital currency enthusiasts have been discussing network fees, specifically transaction fe
Avalanche Launch Fumbles: ‘A Highly-Sophisticated DDoS Attack Derailed Token Sale’
Avalanche Launch Fumbles: "A Highly-Sophisticated DDoS Attack Derailed Token Sale"On July 8, 2020, some members of the cryptocurrency community were prepared to leverage the AVA Lab
First Republic Bank’s Shares Downgraded to Junk Status by S&P Global; Stock Slides More Than 25% Lower
First Republic Bank"s Shares Downgraded to Junk Status by S&P Global; Stock Slides More Than 25% Lower After UBS acquired Credit Suisse and close to a dozen financial institutions
Morpho secures $50M funding led by Ribbit Capital for onchain lending
Ana Paula Pereira7 hours agoMorpho secures $50M funding led by Ribbit Capital for onchain lendingMorpho Labs has raised $50 million from over 40 investors, including Ribbit Capital, which also invests in Revolut, NuBank,
Martin Young4 hours agoBitcoin ETFs to push US slice of crypto ETF trading volume to 99.5% — AnalystApproval of spot Bitcoin ETFs in the United States will likely push the country"s share of crypto ETF trading volumes