Solana erases its 'Google rally' gains but a 50% SOL price recovery is still in play
A recent price rally in the Solana (SOL) market ran out of steam midway as traders' attention shifted to crypto-focused hedge fund Alameda Research's insolvency rumors.
Alameda Research insolvency rumors affect SOL
On Nov. 7, SOL's price plunged nearly 6% to about $30.50. The intraday selloff came as a part of a broader pullback trend that started on Nov. 5 when SOL peaked at around $38.75. Between then and now, the Solana token is down over 20%.
SOL/USD daily price chart. Source: TradingView
The beginning of SOL's plunge coincided with reports that Alameda Research has liabilities worth $8 billion but may not have liquid assets on its balance sheet to meet those obligations.
Interestingly, the value of all those assets plunged synchronously in the past 48 hours including SOL, as well as FTX Token (FTT), Serum (SRM), and Oxygen (OXY) on fears of cascading liquidation if Binance-to-liquidate-its-entire-ftx-token-holdings-after-recent-revelations>Alameda Research becomes insolvent.
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