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The cryptocurrency market is getting cautious as Solana (SOL) approaches a potential inflection point. Market analysts are closely monitoring the $31.2 million worth of SOL, which poses a significant risk of increased sell pressure. This development raises the question: is Solana on the brink of a correction, despite its recent golden cross and steady performance amid selling by key players like FTX and Alameda?
The golden cross has recently appeared on Solana's chart, typically signaling long-term positive momentum. However, the descending trading volume accompanying SOL's price increase presents a concerning divergence—a signal that fewer traders are supporting the current price level, which may weaken the golden cross's bullish case.
Notably, the actions of FTX and Alameda have been adding to the selling pressure on Solana. These entities have been active sellers on the market, yet, intriguingly, Solana's price has remained relatively stable. This steadiness in the face of substantial potential sell-offs is a testament to the underlying demand for Solana and its perceived value within the community.
Despite this, the possible influx of $31.2 million in SOL into the market could tip the scales. Such a large sum being offloaded has the potential to trigger a sharp decline in Solana's price. This scenario would likely be exacerbated by the current overextended state of the market, where any sign of a major sell order could lead to panic selling among investors.
Given these factors, the likelihood of a correction for Solana cannot be dismissed. While the golden cross and Solana's resilience in the face of pressure from FTX and Alameda are positive indicators, the potential for a large-scale sell-off and the decreasing volume are causes for concern.
Alex Dovbnya
