SOL price, along with other cryptocurrencies, faces vulnerabilities from macro and technical perspectives. Despite the weak market structure and bearish sentiment, SOL price has risen 3% to $18.4, defending the $18 support level. Analysts warn of potential risks due to the FTX exchange’s impending liquidation of massive SOL holdings worth $3.4 billion. However, the liquidation process may not begin immediately after approval.
FTX seeks permission to offload at least $100 million in crypto assets weekly, with the possibility of increasing transactions to $200 million. Some experts, like Hitesh.eth, believe that calls for a sell-off may be premature.
SOL price’s bounce off the $18 support level suggests that the path of least resistance is upwards, countering bearish sentiments surrounding FTX liquidations. Traders should exercise caution, but a potential buy signal from the Moving Average Convergence Divergence (MACD) indicator could encourage investors to increase exposure to long positions in Solana.
The recent reversal above $18 is expected to continue in the short term, especially considering SOL price’s highly oversold conditions. However, for the uptrend to remain valid, SOL price needs to surpass $20, paving the way for potential gains towards resistance levels at $25, $27, and $30.