SOL token surges 11%, reaching a $59.4B market cap amid FTX sale.
FTX’s third SOL auction moves 1.8M tokens, nets $232M.
Technical indicators suggest SOL may continue a bullish trend.
Solana’s SOL token has experienced over 11% increase in the last 24 hours, coinciding with the commencement of round three of the FTX estate’s SOL sale. Additionally, its market cap has surged by 9.14% today, reaching $59,414,082,134 and securing its position as the fifth-largest cryptocurrency by market cap.
SOL/USD 24-Hour Chart (Source: CoinStats)
This rise occurs as the broader cryptocurrency market sees a downturn, highlighted by Bitcoin falling below the $58,000 mark, testing the Bull Market Support Band Indicator. The commencement of the sale follows the successful conclusion of the previous auction, which involved locked SOL tokens.
FTX Estate Initiates Third SOL Token Auction
FTX Estate’s ongoing disposal of SOL tokens has reached its third phase starting May 1. The recent auction, which concluded the sale of 1.8 million SOL tokens, garnered approximately $232 million for the estate’s liquidators.
According to the Block, bids between $85 and $110 per token in this round were mostly successful, while those below $85 were rejected. Most tokens sold at $95, applying a 26% discount, while those fetching $110 witnessed a lesser discount of 15%. This discount reflects the locked nature of the tokens, delaying their availability for trading.
The locked tokens purchased in these auctions are bound by a four-year vesting period, emphasizing the long-term investment horizon expected from buyers. Among the prominent participants in the second-round auction were notable investment firms Galaxy Trading and Pantera Capital.
The initial auction saw the sale of $1.9 billion worth of SOL, accounting for nearly two-thirds of a larger batch valued at $2.6 billion. This batch comprised up to 30 million SOL tokens, initially offered at $64 each. As the sale rounds progress, the impact on SOL’s market price becomes more apparent, demonstrating significant investor interest despite the market’s overall downtrend.
Next #SOL auction on 5/1. We'll be bidding again. @FigureMarkets will push hard to open this up to US accredited and ALL non-US investors. Join us: https://t.co/RuA41vgWAx
— Mike Cagney (@mcagney) April 25, 2024
As the third round gets underway, Mike Cagney, CEO of Figure Markets, has confirmed their participation. The firm is preparing a special purpose vehicle to facilitate their bids, targeting non-US and accredited US investors specifically. This move by Figure Markets and other participants underlines the continuing interest in SOL tokens amidst evolving market dynamics.
SOL Price Action
After falling below the 20-day support level at $122.04, the Solana (SOL) token demonstrated a bullish recovery, reaching the 23.6% Fibonacci retracement level. If this bullish trend persists, SOL might break through this resistance and target the next key resistance at $144.84. A successful move above this level could signal strong bullish momentum, potentially driving SOL’s price towards $159.99.
SOL/USD 4-Hour Chart (Source: Tradingview)
Conversely, if SOL struggles to overcome the current resistance, it could face a decline, possibly retesting the $122.04 support level again. A failure to hold this support could lead to a drop to levels last seen on March 5, marking a two-month low.
SOL/USD 4-Hour Chart (Source: Tradingview)
On the technical analysis front, the Chaikin Money Flow indicator currently stands at 0.04 in the negative territory, suggesting an increase in money inflow, which could hint at a short-term bullish uptick. Additionally, the Bull Bear Power indicator shows enlarging green candles above the zero line, indicating strengthening bullish momentum in the near term.
The post Solana’s SOL Jumps 11% in a Day as FTX Estate Kicks Off Third Sale Round appeared first on Coin Edition.
