by Nayab Fatima
The market remains uncertain because of extreme stablecoin trading and upcoming FTX transaction payments that put Solana’s price stability at risk. Signs from investors’ actions and technical indicators indicate that Solana may experience strong market movements soon.
Observers now study stablecoin movement patterns across Solana’s platform because these matches show how prices can shift quickly. According to Mercuryo global payments data the number of USDT transactions through Solana hit 137% growth during the final week of February following its 61% dip during the prior week.
Stablecoin Trading Surges On Solana
The sudden market movement shows investors moving their funds as SOL possibly changes its value according to Mercuryo co-founder and CEO Petr Kozyakov. DEXs on Solana like Jupiter and Raydium get more users which makes Solana’s price fluctuate more intensely according to Kozyakov.
The patterns studied by analysts show that Solana may be at a pivotal price point for its market movement. On March 19 Trader Tardigrade analyzed Solana to see a pattern of converging triangles growing on the Heikin Ashi hourly chart. Traders remain unsure which direction the token will move next because its setup allows it to break either up or down.
Solana’s market trends heavily depend on the upcoming payments from the bankrupty of exchange FTX. On March 4 both FTX and Alameda Research simultaneously released $431 million worth of SOL tokens making it their largest extraction since November 2023.
Uncertainty Looms Over Solana
The market can absorb smaller amounts of sold tokens but ongoing sales from these firms typically makes SOL tokens less valuable. In their sales of digital assets FTX has a temporary $50 million weekly limit which the court can boost to $100 million weekly depending on need.
The court can approve an increase which lets FTX sell $200 million worth of digital assets in one week. On May 30 FTX intends to start reimbursing creditors according to its recovery plan which promises to pay back 98% of all claims at 118% value. Official estimates place the arriving payments between $14.5 billion and $16.3 billion.
Investors need to analyze both market trends and FTX-related SOL trades to accurately understand this market situation. Analysts believe that traders moving their funds into memecoins instead of SOL caused this effect which harmed its trading performance. The repayments to FTX customers may create extra selling pressure which may control SOL’s price growth.
Those invested and trading Solana will need to track its behavior through many factors as it deals with market uncertainties. Market participants are waiting for significant events that will define how Solana performs in the cryptocurrency market.
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