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The collapse of FTX drags down the price of Solana. How long will the decline in SOL last?

The trend of Solarium (SOL), after collapse of FTX, it was very difficult. On a monthly and biweekly time frame, the data of CoinGecko show a sharp decline, while the daily and weekly time frames show a modest appreciation. This shows that the wounds left by FTX's demise have certainly not been healed by Solana's native token: since FTX collapsed, SOL has lost a significant chunk of market capitalization.

Now, considering that the bearish signals continue to emerge from the technical analysis, it is likely that the decline in prices could continue for a long time, aiming below the $12 level, perhaps due to the fact that Alameda Research, the "brother" of FTX in the sector, has played a significant role inICO by Solana.

Investor confidence plummeted as concerns about Solana's close ties to SBF and his company developed in the wake of the bankruptcy of theexchange which held almost a billion SOL.

SOL was the manifesto of DeFi in this sector, with the token however continuing to lose ground below 13 dollars, down by almost 70% compared to the price of 36,83 dollars reached before the collapse of FTX.

Therefore, one can well trace too direct a link between FTX and Solana it is good to broaden the analysis framework and remember how the market is now dominated by fear and a negative mood due to Solana's close relationship with FTX…

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Roberto Rais

A great cryptocurrency expert and a long time collaborator. He actively follows several specialized Blogs in the cryptocurrency sector as Editors

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