Solana has lost 60% of its market value in a week due to its exposure to FTX. But what's next for the 'Ethereum killer'?
has $9 billion in liabilities versus a $1 billion balance sheet, which could prompt its trustees to liquidate its SOL holdings to repay debtors.
To avoid such a scenario, Solana could make technical changes to its token economy, reducing FTX's impact. OneThe errant allocation is burned.Airdrop all SOL token holders' additional SOL, except for the party holding the errant allocation.From a technical perspective, Solana shows signs of bullish divergence between its price and relative strength index .
A bullish divergence materializes when an asset's price forms lower lows but its momentum indicator form a higher low. Traditional analysts see it as a buy signal, which may result in a short-term SOL price recovery on its daily chart.SOL/USD could rise toward $18, its range resistance level, in the event of a short-term recovery. In other words, a 20% rebound.But on longer-timeframe charts, SOL could see further decline toward $2.
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