Monat: November 2022

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Solana recovers 20%. Here is what is happening and the potential price action next

Solana (SOL/USD) is again flexing its muscles after losing half of its value in two days. On Friday, the cryptocurrency had recovered more than 20%. That ignites hopes that SOL would overcome a potential single-digit price. But how likely is the rally to be sustained? 

You know that SOL has been falling heavily due to the potential unlocking of coins at the end of Epoch 370. The unlock has since been postponed, which has saved the token from a further decline. The postponing allows a restaking of the tokens, saving about 28.5 million SOL tokens from entering supply.

Another factor that has helped SOL is a slightly improved crypto sentiment. US inflation data for October showed that prices rose by a below-estimate level. The data fueled a relief rally in cryptocurrencies, and SOL benefited in the process. The news at least bolsters an overall crypto sentiment that had been battered by concerns following the collapse of the FTX exchange.

Still, SOL is not out of the woods. Data by DeFiLlama shows that activity on the blockchain has been on a downward spiral in the past one week. The total value locked on the blockchain is currently $471.69 million, from $1 billion on November 6. Clearly, the declining TVL could challenge a sustained SOL recovery. 

SOL price outlook amid a relief rally in a bear market

Source – TradingView

SOL’s price outlook shows the token recovering from the oversold level of $11.7. The RSI has moved from the oversold level but remains below the midpoint. A further upside is possible for SOL as the relief rally looks strong.

Should you buy SOL?

Solana token will face a litmus test at $28. This is the established long-term resistance that was lost as the price crashed below.

From a fundamental perspective, it is not wise to buy SOL now. The declining TVL could derail a sustained recovery in the token. For now, investors can enjoy the relief rally up to $28, which must be overcome to make a bullish call.

Where to buy SOL

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy SOL with eToro today

Capital.com

Capital.com is a global broker which offers over 200 cryptocurrencies for its users. It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets. On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.

Buy SOL with Capital.com today

The post Solana recovers 20%. Here is what is happening and the potential price action next appeared first on CoinJournal.

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This week in crypto: FTX files for Chapter 11 bankruptcy

It has been a rollercoaster of a week, even for the cryptocurrency market standard, with FTX filing for bankruptcy.

Crypto exchange FTX files for bankruptcy

This is perhaps the most action-filled week in the cryptocurrency space since the start of the week. FTX, one of the leading cryptocurrency exchanges in the world, has filed for bankruptcy after a series of events that showed how poorly Sam Bankman-Fried handled the company.

Earlier this week, Binance revealed that it would liquidate $584 million worth of FTT tokens, with Changpeng Zhao revealing that the decision was due to some information that came to light.

FTX began to face liquidity issues afterward, with reports indicating that FTX used customer funds to fund Alameda Research, the hedge fund owned by Bankman-Fried.

Binance offered to acquire FTX and take on its liabilities but later pulled out of the deal after looking at FTX’s books. 

FTX announced earlier today that it has now filed for Chapter 11 bankruptcy, alongside numerous companies affiliated with FTX, including FTX US and Alameda Research. 

Furthermore, CEO Sam Bankman-Fried has resigned from his position, and Chicago-based attorney John J. Ray III has been appointed to take the position. The cryptocurrency exchange is seeking bankruptcy protection in Delaware.

FTX is currently under investigation in the United States by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). 

FTX is also at risk of losing its licence in Europe following the collapse of the cryptocurrency exchange. 

$150 Billion was wiped from the crypto market this week

The cryptocurrency market sustained massive losses this week, all thanks to FTX’s collapse. The total cryptocurrency market cap was above $1 trillion by the end of last week.

However, at the time of this report, the total crypto market cap stands at $852 billion. Bitcoin has lost 19.5% of its value this week and is now trading at around $16k per coin. Ether is also down by 22% this week and is now trading around $1,200. 

Crypto.com pauses USDC and USDT withdrawals on the Solana network

In another bearish news this week, crypto exchange Crypto.com notified its customers that it had halted the withdrawals of USDT and USDC stablecoins on the Solana network.

Crypto.com said the move was immediate, and users can also not deposit USDT and USDC stablecoins via the Solana network. USDT and USDC remain available via other networks, including Ethereum and Cronos.

Binance tops up its emergency fund

Following the FTX collapse, most cryptocurrency companies were on the defensive this week. Most companies came out to reveal whether they had any funds tied up with FTX and if they could handle the resulting effect.

Binance, the world’s leading cryptocurrency exchange, revealed that it had topped up the Binance Secure Asset Funds for Users (SAFU) to $1 billion. The crypto exchange said the amount had dipped to $735 million since the start of the year due to the ongoing crypto winter. The move is seen as an assurance from Binance that user funds are safe on the platform.

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