SolanaDownturn

The Solana ecosystem is facing even more turbulence today as *FTX* is set to unlock *11.2 million SOL*, worth nearly *$2 billion*, on *March 1st (today)*. Let’s break down why this is a huge concern for Solana holders. 🔥

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*FTX Unlocks 11.2M SOL: What Does This Mean? 🤔*

Solana’s already been under *heavy pressure*, and the news of this massive unlock just adds more fuel to the fire. With FTX's bankruptcy estate unlocking *11.2 million SOL*, about *8% of Solana’s circulating supply*, the market is about to get flooded with new tokens. This will likely *increase selling pressure* and hurt the price further. 😬

*Why does this matter?*
- *FTX’s fire sale* to repay creditors has already been controversial, with the exchange selling *41 billion SOL* after its collapse in *November 2022* at discounted prices to firms like *Galaxy* and *Pantera*.
- *These firms* are now sitting on *huge profits* (165%, 79%, and 66%, respectively), and it’s likely they may *liquidate* these assets once the unlock happens. This means more *supply* flooding the market and fewer *buyers* to absorb it. 🚨

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*Solana Ecosystem’s Troubles Keep Mounting 😔*
2. *LIBRA Token Controversy*: The *LIBRA token saga* involving *Argentina President Javier Milei* added fuel to the fire. To top it off, *Jupiter*, a decentralized exchange aggregator, admitted to knowing about the token launch beforehand, confirming suspicions of a *rug pull*. 🚨

All these issues have *negatively affected market sentiment*, making Solana a *risky bet* for investors.

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*What’s the Impact on Solana’s Price? 📉*

- *Growing skepticism*: There’s a general *negative bias* building around Solana, with *speculation* rising that the unlocked SOL could be *dumped* by the institutional players who bought it at a *discount*.

- *Price predictions*: Analysts are now suggesting that Solana could *face lower prices*, with a *bearish outlook* in the short term. The asset has already *broken down* from a *multi-month ascending triangle*, invalidating the previous *bullish projections*. 📉

- *Target price*: According to *Ali Martinez*, Solana’s next target could be as low as *125*, and it’s already *down 10%* in the past week, trading around *$140.77* at the time of writing.

*Is it Time to Exit or Wait? 🤷‍♂️*
Given the *uncertainty* surrounding Solana, the massive *unlocking event*, and the growing *skepticism* in the market, this could be a risky time to hold or buy Solana. *If you're holding*, consider your options carefully as the market sentiment could keep pushing the price down. ⚠️

For traders looking for *short-term plays*, there might still be *opportunities*, but it’s important to stay *alert* and *monitor the situation* closely. 📊

$SOL
$FTT

#solana #FTX #SolanaNews #SolanaDownturn #cryptotrading