Solana erases its 'Google rally' gains but a 50% SOL price recovery is still in play
A recent price rally in the Solana (SOL) market ran out of steam midway as traders' attention shifted to crypto-focused hedge fund Alameda Research's insolvency rumors.
On Nov. 7, SOL's price plunged nearly 6% to about $30.50. The intraday selloff came as a part of a broader pullback trend that started on Nov. 5 when SOL peaked at around $38.75. Between then and now, the Solana token is down over 20%.
The beginning of SOL's plunge coincided with reports that Alameda Research has liabilities worth $8 billion but may not have liquid assets on its balance sheet to meet those obligations.
Interestingly, the value of all those assets plunged synchronously in the past 48 hours — including SOL, as well as FTX Token (FTT), Serum (SRM), and Oxygen (OXY) — on fears of cascading liquidation if Alameda Research becomes insolvent.
1. low liquidity tokens$4.6bn of the assets are in low liquidity tokens:⚰️ $SOL⚰️ $SRM⚰️ $MAPS⚰️ $OXY⚰️ $FIDAother than SOL there is no way to liquidate the rest of the holdings without completely crashing the marketsthe last 4 on the list are highly dillutive too!
Nevertheless, traders showed interest in holding SOL's price above $30, a technical support level,on Nov. 7. One reason could be a flurry of optimistic news that emerged over the weekend, including the launch of smartphones, dApp stores, and a Google Cloud partnership.
In addition, Solana continues gaining higher traction in the nonfungible token (NFT) sector. For instance, the total number of NFTs released on the Solana blockchain is up 19.3% quarter-over-quarter to reach over 8 million in Q3 2022.
"Several developments across Solana's NFT sector allowed it to maintain a strong position relative to a peer group of the top L1s by secondary NFT sales
Read more on cointelegraph.com
