Another institution fades away a week after FTX’s collapse while Solana price eyes a 40% nosedive
|- Solana price is hinting at 42% crash, given the rising bearishness in the crypto market.
- Hong Kong-based trading service Genesis Block ceased its portal following FTX's collapse.
- If Solana holders accumulate at these lows, SOL would invalidate the current bearish outlook to reclaim the $15 level.
Solana price is bearing the broader market's bearishness and maintaining its crucial support. Akin to the altcoin, crypto institutions also continue to take a hit from FTX's collapse. The widespread negative implications could make the recovery of the crypto market a challenge.
FTX brings another institution to a halt
The FTX-led crypto market crash of November 6 roiled the space bringing losses to more and more firms. The latest addition to the list is a cryptocurrency retail service provider based out of Hong Kong, Genesis Block. The company announced in an email to its customers that on December 10, it would shut down its over-the-counter (OTC) portal.
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 also mentioned that no new customers would be onboarded. Furthermore, the existing customers have been directed to withdraw their funds. While no explicit reason was given, the email noted,
We have ceased trading, as we don't know which counterparties would fail next, so we would rather close out all our positions to regain some of our liquidity.
Genesis Block is not the first company to take a hit this week. As reported by FXStreet, a Singapore government-owned holding company, Temasek, also faced significant losses. The entity wrote down its $275 million investment in FTX following the exchange's bankruptcy.
Regardless, Binance CEO Changpeng Zhao (CZ) continues to take shots at FTX tweeting,
If an exchange holds users assets as is, no amount of other people's tweets will cause problems. Simple.
— CZ Binance (@cz_binance) November 18, 2022
If an exchange holds users assets as is, no amount of other people's tweets will cause problems. Simple.
— CZ Binance (@cz_binance) November 18, 2022
Binance was the very first trigger of the November 6 crash after it dumped over $584 million worth of FTT tokens. The crash that followed depleted not only the market value of FTT but also of Solana, which had a significant investment from FTX's sister company Alameda.
Solana price is at the cusp of a breakdown
Solana price declined by 62% following the November 6 crash and is currently trading at $13.56. Since the broader crypto market outlook is bearish, SOL holders might want to brace themselves for a downfall.
If Solana price continues to register red candles on the chart, it would end up tagging the immediate support level at $12.78. A further slump in price would bring the altcoin toward the $11.69 mark, which is crucial in preventing a crash to $7.77. However, a daily candlestick close below this support level would bring SOL to a 21-month low, constituting 42% losses for investors.
SOLUSDT 4-hour chart
But if the investors decide to accumulate SOL at its current lows, the consequent buying pressure could prevent a downfall. Solana price might recover to $17.76, provided it can flip the $15.17 level into a support floor. A rise from $17.76 would result in the cryptocurrency tagging $19.80, which marks the upper limit of the inefficiency at $18.87 to $19.80, labeled as the Fair Value Gap (FVG).
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