Positioning investors on the Solana network and a major technical chart pattern threatens more volatility for Solana token, which can see a decisive moment for its price action.
Solana’s transport layer saw “intense” volatility in Tether’s USDT trading (USDT) Stablecoin, which may indicate that traders are looking for new investment opportunities again.
USDT trading on Solana’s transportation layer saw more than 137% climbing last week of February, after seeing a 61% stab last week, according to a Global Payment Infrastructure Platform Mercuryo platform report, shared with the Cointelegraph.
Stablecoin Trading Spike shows an unmatched level of trading activity that can signal more volatility for Solana (Sol) token, according to Petr Kozyakov, co-founder and CEO of Mercuryo.
“Fnetic activity” may “indicate that the chain is susceptible to PABAGU -new,” the CEO told Cointelegraph, addition:
“However, Solana’s natural strengths – rapid transaction processing, high scalability, and an active trading ecosystem – can also be factors.
“Notably, Dex’s in Solana, like Jupiter and Raydium, has ignored significant interests,” he added.
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Meanwhile, a major emerging technical chart pattern can be decisive for Solana’s price action in the near term.
Source: Trader Tardigrade
“Solana Heikin Ashi Hourly Chart shows a converge triangle. Post.
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Memecoins, FTX payments may limit the price of sol
While some analysts suggest that the current Memecoin Frenzy absorbs liquidity from the Solana token, many other factors influence Sol’s price action.
Interestingly, incoming payments from FTX exchange losses may limit Solana’s price action, Kozyakov explained, addition:
“The defunct FTX exchange sets up a payment plan that involves the distribution of a large amount of sol tokens to creditors, which may result in the sale of pressure.”
FTX and Alameda Research-Linked Wallets Unstaked $ 431 million of Sol Tokens on March 4, which has marked the largest unlocking of SOL token since November 2023, Cointelegraph reported.
Although FTX and Alameda have locked more than $ 400 million in SOL, companies may not be able to sell all tokens in a single transaction. In September 2023, Delaware Bankruptcy Court FTX’s plan was approved to sell digital assetsimposing strict limits to the extermination values.
Under the court’s decision, the bank’s losses can sell digital assets weekly through an investment advisor, with an initial limit of $ 50 million in the first week and $ 100 million in subsequent weeks. If the FTX aims to sell more, it must request a court approval to raise the limit to $ 200 million per week.
Next FTX rotation of payments will take place on May 30. Under the FTX recovery plan, 98% of lenders expected to be received At least 118% of their cost of cash in cash. In May 2024, the exchange estimated the total distribution amount between $ 14.5 billion and $ 16.3 billion.
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