Solana: Is there any light from SOL or is it all night
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- SOL has taken 55.1% off this week's sale attack
- More selling pressure is possible as over 47.2 million SOL is unsecured
Solana's native cryptocurrency, SOL, has had an unexpectedly bearish week so far. The massive discounts she's received so far suggest that now might be a good time to play the game again. But if she's going to buy SOL at a discount at the current price, she might need to reconsider now, here's why.
Lambda Markets reports an interesting observation, suggesting that SOL may be about to face more pressure. According to the research results, about 47.28 million SOLs will be deleted by Thursday. The prevailing assumption is that unshared SOL is likely to find its way to exchanges, leading to a new wave of selling pressure.
If the entire SOL is sold without participation, we expect sales pressure to exceed $890 million. This is enough to prevent other SOL holders from selling their SOL holdings in the hope of buying them back at a lower price. In other words, we could see over $1.1 billion of selling pressure pouring into exchanges.
Solana's market capitalization has dropped to as low as $7.69 billion in just seven days. SOL is expected to recover on Monday, a fraction of the selling pressure we've seen this week.
However, the upcoming selling pressure will have to be greater than the demand at the current low. Interestingly, the SOL market capitalization shows buying pressure has exceeded $1.21 billion in the past few hours at press time.
As expected, the market cap plummeted resulting in a drop in the value of SOL.
At press time, it is trading at $18.6, a new low for 2022. The bullish expectations are based on the fact that it is currently in the oversold territory.
Solana's volume also spiked to weekly and monthly highs in the past 24 hours. However, she recorded a slight decline before reaching her current high.
The drop could indicate a slowing of selling pressure and a return of traders buying on increased volume. This may explain why the price of SOL fluctuates in the $18 price range.
The social domain of SOL also led significantly during the same time period. This means that Solana is currently receiving a lot of attention and investors may be more sensitive to positive or negative news.
Nov 10, 2022