Coin Bureau host Guy issues a warning that a top Ethereum (ETH) competitor faces more downside risks in the FTX fallout.
The Coin Bureau host tells his 2.17 million YouTube subscribers that the collapse of the FTX crypto exchange has made the way forward for Solana (SOL) difficult.
According to the host, Solana will come under serious selling pressure as the beleaguered crypto exchange and digital asset hedge fund Alameda Research dispose of their holdings of the Ethereum rival to repay affected users and creditors.
“In any case, it is clear that demand for SOL is down, and it is easy to understand why.
Some have begun to question Solana’s future. And this is largely due to the huge amount of SOL that FTX and Alameda will be forced to sell when the time comes to compensate their creditors.”
Guy says that as a result, Solana could go lower helped by the fact that the crypto market probably hasn̵[ads1]7;t bottomed out yet. Based on technical analysis, the Coin Bureau host says that Solana could fall by around 40% from its current level.
“To make matters worse, the bottom of the crypto bear market is probably not in yet. This means that SOL will go lower even without all the selling pressure from these entities.
The long-term price chart suggests that SOL could fall to $8. This would be consistent with the estimated percentage loss in other major altcoins.”
Solana is trading at $13.68 at the time of writing, down more than 50% in the past two weeks.
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