BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
FOLLOW
BlockNews
  • Crypto
  • Finance
  • Politics
  • Memecoins
  • NFT
  • Technology
  • Opinion
No Result
View All Result
BlockNews

Solana’s Price Went Down and Here is Why

by Matoy
May 8, 2024
in Breaking News, Crypto
A A
1
SHARES
Share on TwitterShare on Reddit
  • Solana (SOL) price has declined by over 2.1%, correlating with a reduction in the Total Value Locked (TVL) within its ecosystem and increased demand for the U.S. dollar.
  • FTX’s liquidation of SOL holdings at a discount has contributed to bearish sentiment around Solana, with further auctions expected.
  • The U.S. dollar’s recovery is adding pressure on crypto prices, including SOL, which is inversely correlated with the dollar index.

Solana’s native token, SOL, has experienced a notable decline, dropping over 2.1% to approximately $145 on May 8. This recent price movement is part of a broader correction that commenced a day earlier when SOL peaked at around $160. Several factors have contributed to this downturn, including strategic asset sales by FTX and a strengthening U.S. dollar.

FTX’s Impact on Solana’s Market

FTX’s ongoing bankruptcy proceedings have led to the liquidation of its cryptocurrency holdings, including a significant portion of Solana. The exchange has confirmed it will have ample funds to cover its liabilities after liquidating its assets, including up to $16.3 billion in cash expected post-sales. Notably, FTX executed these sales at considerable discounts, with recent transactions seeing nearly two-thirds of its SOL reserves sold to entities like Galaxy Trading, Pantera Capital, and Neptune Digital Assets at a 63% markdown. This has spurred bearish sentiment within the market, reflecting in SOL’s price, which plummeted by as much as 37% post-auction.

Decrease in TVL and Its Implications

The price decline aligns with a decrease in the Total Value Locked (TVL) across the Solana ecosystem, which fell to 26.92 million SOL on May 8 — the lowest point in the month. TVL is crucial as it represents the amount of SOL staked or locked in various decentralized finance (DeFi) protocols, influencing the demand and price of SOL. A reduction in TVL suggests a diminished demand for Solana, further exerting downward pressure on its price.

U.S. Dollar’s Strengthening and Crypto Prices

Adding to the complexities is the strengthening of the U.S. dollar, evidenced by the recovery of the U.S. dollar index (DXY) to 105.64 on May 8, marking a significant rebound from its recent low. This resurgence has put additional pressure on cryptocurrencies, including SOL, due to their inverse correlation with the dollar. The ongoing economic narrative and hawkish signals from U.S. Federal Reserve officials have bolstered the dollar’s appeal, detracting from riskier assets like cryptocurrencies.

The technical analysis of SOL’s price action suggests that the recent declines could be part of an overbought price correction, with its Relative Strength Index (RSI) previously exceeding 70. However, the formation of a cup-and-handle pattern indicates a potential bullish reversal, which could see SOL’s price targeting around $205, approximately a 40% increase from current levels, should it break above the pattern’s neckline.

Tags: FTXSolana
TweetShareShare

DON'T MISS THESE! HOT OFF THE PRESS

XRP Stuck Below $3 as Network Activity and Open Interest Decline
Crypto

XRP Stuck Below $3 as Network Activity and Open Interest Decline

June 20, 2025
Elon Musk Sparks Brief PEPE Rally With Another Meme Post
Crypto

Elon Musk Sparks Brief PEPE Rally With Another Meme Post

June 20, 2025
XRP Holds Steady Near $2.15 as Market Stagnation Drags On
Crypto

XRP Holds Steady Near $2.15 as Market Stagnation Drags On

June 20, 2025
XRP Positioned for Breakout Amid Global Uncertainty, Analysts Say
Crypto

XRP Positioned for Breakout Amid Global Uncertainty, Analysts Say

June 20, 2025
XRP at a Crossroads: Only Two Ways This Can Go
Crypto

XRP at a Crossroads: Only Two Ways This Can Go

June 20, 2025
Polymarket Thinks US Stablecoin Bill Is a Near Lock—But Will It Actually Pass?
Crypto

Polymarket Thinks US Stablecoin Bill Is a Near Lock—But Will It Actually Pass?

June 20, 2025
Load More

Related News

XRP Stuck Below $3 as Network Activity and Open Interest Decline

XRP Stuck Below $3 as Network Activity and Open Interest Decline

June 20, 2025
Vladimir Putin Says Global Tensions Edge Toward World War III

Vladimir Putin Says Global Tensions Edge Toward World War III

June 20, 2025
Elon Musk Sparks Brief PEPE Rally With Another Meme Post

Elon Musk Sparks Brief PEPE Rally With Another Meme Post

June 20, 2025
XRP Holds Steady Near $2.15 as Market Stagnation Drags On

XRP Holds Steady Near $2.15 as Market Stagnation Drags On

June 20, 2025
XRP Positioned for Breakout Amid Global Uncertainty, Analysts Say

XRP Positioned for Breakout Amid Global Uncertainty, Analysts Say

June 20, 2025
Discord Twitter Youtube TikTok Instagram

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin Technology US Web3 xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • Home
  • Crypto
  • Memecoins
  • Technology
  • Politics
  • Finance
  • NFT
  • DeFi
  • Opinion

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.