- Given the growing bearishness in the crypto market, Solana price is hinting at a 42% decline.
- Hong Kong-based trading service Genesis Block shut down its portal after the collapse of FTX.
- If Solana holders rally below this low, SOL will invalidate the current bearish outlook to recover the $15 level.
Solana’s price is broadly bearish and is maintaining its critical support. Similar to altcoin, crypto firms continue to take a hit from FTX’s decline. Widespread negative effects may make crypto market recovery challenging.
FTX shuts down another firm
The November 6 FTX-led crypto market crash sent the space reeling, bringing losses to more and more institutions. The latest addition to the list is cryptocurrency retail service provider based in Hong Kong, Genesis Block. The company announced the closure of its over-the-counter (OTC) portal on December 10 in an email to its customers.
Genesis Block, at one point, operated the largest Bitcoin ATM network in Asia before selling the business to a third party in 2021. In the email, the company mentioned that no new customers will be onboarded. Further, existing customers are advised to withdraw their money. Although no clear reason was given, the email noted,
We stopped trading because we don’t know which counterparties will fail next, so we close all our positions to get some of our liquidity back.
Genesis Block isn’t the first company to take a hit this week. As reported by FXStreet, Singapore’s state-owned holding company Temasek also faced significant losses. The entity wrote down its $275 million investment in FTX after the exchange’s bankruptcy.
Regardless, Binance CEO Changpeng Zhao (CZ) continues to take shots at FTX tweeting,
If the exchange keeps the user’s assets intact, any tweets from other people won’t cause problems. simple
— CZ Binance (@cz_binance) November 18, 2022
Binance was the first trigger of the Nov. 6 crash after it dumped $584 million worth of FTT tokens. The subsequent crash eroded not only FTT’s market value but also Solana, which had a significant investment from FTX’s sister company Alameda.
Solana is on the verge of price breakdown
Solana’s price has fallen 62% since the Nov. 6 crash and is currently trading at $13.56. Since the outlook for the broader crypto market is bearish, SOL holders may want to brace themselves for a fall.
If Solana price continues to register red candles on the chart, it will end up tagging the immediate support level at $12.78. A further fall in price will bring the altcoin to the $11.69 mark, which is critical in preventing a fall to $7.77. However, a daily candlestick below this support level brings the SOL to a 21-month low, resulting in a 42% loss for investors.
SOLUSDT 4-Hour Chart
But if investors decide to stockpile SOL at its current lows, the resulting buying pressure could prevent a decline. Solana price may recover to $17.76, provided the $15.17 level turns into a support floor. A rise from $17.76 would lead the cryptocurrency to the $19.80 tag, marking the upper limit of inefficiency at $18.87 to $19.80, labeled the Fair Value Gap (FVG).