Solana Price Prediction as On-chain Data Suggests Alameda Wallets are Dumping Tokens – Can Solana Fall to $3?
SOL, the native token of the Solana blockchain, slumped under $10 for the first time since February 2021 on Wednesday, dropping 10% intra-day and extending its losses since the abrupt collapse of Sam Bankman Fried’s seemingly corrupt FTX/Alameda crypto empire in early November to roughly 70%. Price predictions thus remain highly pessimistic.
The collapse comes amid a continued stream of negative stories surrounding the Solana crypto ecosystem, as well as the ongoing FTX saga. Two of Solana’s top non-fungible token (NFT) projects, DeGods and y00ts, recently announced that they are jumping ship to build on the Ethereum and Polygon blockchains.
Meanwhile, blockchain watchers pointed out on Wednesday that Alameda wallets have become active once again, just a few days after Sam Bankman-Fried was released from jail on bail. ERC-20 tokens are being dumped and funds are being moved into blue chip cryptocurrencies like ETH, BTC and USDT, with some funds moving via transaction destination obscuring instant exchangers.
Twitter users have unsurprisingly been speculating that Sam Bankman-Fried is behind the dumping of tokens and traders are speculating that SOL tokens might also be getting dumped. Sam Bankman Fried was a big promoter and backer of the Solana blockchain and is thought by some to have artificially boosted the price of SOL.
SOL/USD’s latest drop below recent lows in the $11 area and under the psychologically important $10 level has opened the door to a further cascade of selling that could see the token test key long-term support at around $5.20 in the form of the August 2020 highs. If the token dropped below this level, that could open the door to a further decline to the $2.50 balance area.
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