Solana: Key Findings
- Solana suffered over 20% loss on November 9, 2022, following the Binance-FTX dispute.
- Former FTX CEO Bankman-Fried repeatedly promoted Solana and its ecology for the past few years.
- SOL was worth $982 million, according to the financial sheet of the bankrupt exchange.
- On account of FTX Fallout, Solana DeFi’s value is reduced by over $700M.
- SOL is now trading at around $13.50 and is yet to show a sign of recovery from the recent crash.
Solana (SOL) Technical Analysis
The last year has seen a fall in the $10 billion TVL on SOL, with the price of the token playing a part in that decline. However, the last two weeks have seen a more pronounced decline.
A 70% decrease from the $1B in TVL on November 2, when CoinDesk revealed the cooperation between treasury accounts of FTX and its sibling business, Alameda Research, has seen more than $700 million moving out of Solana-based applications.
The 50% price drop of SOL has contributed to that drop, as has a decline in the prices of associated DeFi tokens.
Solend, a lending and borrowing platform, suffered the greatest percentage and monetary losses. It had more than $280 million on November 2 and now has less than $30 million. According to data, a large number of stablecoins, wrapped bitcoin, and Solana-based tokens are leaving the protocol.
According to our technical analysis, Solana must exceed the immediate resistance at $15 to restore the recent bullish momentum. According to Fibonacci retracements, upcoming resistances lying at $17.49 (23.6%), $21.56 (38.2%), and $24.85 (50%).
If SOL decides to remain under the current downtrend, we’ll closely watch how the price reacts near the psychological support at $10.