by Coin Bureau host Guy warns that a top competitor to Ethereum (ETH) faces more downside risk in the FTX fallout.
The Coin Bureau host tells his 2.17 million YouTube subscribers that the collapse of crypto exchange FTX has complicated the path for Solana (SOL).
According to the host, Solana will come under heavy selling pressure as struggling crypto exchange and digital asset hedge fund Alameda Research divest their stakes in Ethereum rival to repay affected users and creditors.
“In any case, it’s clear that demand for SOL has dropped, and it’s easy to see why.
Some have begun to question Solana’s future. And that’s in large part due to the massive amount of SOL that FTX and Alameda will have to sell when it comes time to indemnify their creditors.”
Guy says that Solana could head lower as a result, helped by the fact that the crypto market has likely not bottomed yet. Based on technical analysis, the Coin Bureau host says that Solana could drop about 40% from current levels.
“To make matters worse, the bottom of the crypto bear market is probably not yet in. This means that even without selling pressure from these companies, SOL will decline.
Its long-term price chart suggests that SOL could drop to $8. This would be consistent with the estimated percentage loss for other major altcoins.”
Solana is trading at $13.68 at the time of writing, down more than 50% over the past two weeks.
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Featured image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
