Solana Price Prediction as Sam Bankman-Fried Enters FBI Custody – Has SOL Bottomed Out?
The solana price remains flat in the past 24 hours at $12.09, following the news that former FTX CEO Sam Bankman-Fried has enetered FBI custody and is being extradited to the United States. It's also down by 14% in a week and by 67% since the November collapse of FTX, which had been a big supporter of Solana and its ecosystem.
Indeed, the exchange's collapse ultimately wiped hundreds of millions from the value of Solana's DeFi ecosystem, with the Solana Foundation itself having around $200 million in cryptocurrencies on the exchange when it collapsed. And with the wider market remaining largely subdued, there's little prospect of SOL enjoying a significant price rally in the coming weeks, even if it has likely bottomed.
Based on SOL's chart, the altcoin bottomed out in early November, when FTX collapsed. However, it seems that its descent hasn't quite finished yet, and that it may not rise up again just yet.
For example, SOL's relative strength index (purple) sank to 25 in November, yet has wavered between 30 and 40 pretty much ever since. Likewise, its 30-day moving average (red) continues to slide further below its longer term 200-day average (blue), signalling that it hasn't turned a corner just yet and may continue falling in the short term.
As stated above, SOL's declines over the past month and a half have resulted almost exclusively from the collapse of FTX. This is because the exchange held significant importance for Solana, with parent company Alameda Research leading a £314.2 million funding round in developer Solana Labs last year.
Not only that, but Sam Bankman-Fried had a major hand in building the DEX Serum on the Solana blockchain, an exchange that effectively collapsed following FTX's bankruptcy (since its
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