Solana price dumps 21% on week as round three of FTX estate sale of SOL commences

Solana (SOL) price is down almost 5% in the past 24 hours and over 20% in the last seven days. The dump comes as the broader crypto market contracts with Bitcoin price leading the pack as it slides below the $58,000 threshold to test the Bull Market Support Band Indicator.

Also Read: Solana price breakout delayed amid plans for FTX to auction remainder of its SOL tokens

FTX estate’s third round of sales commences for locked SOL tokens

After concluding the second round of the auction for the locked SOL tokens, FTX estate has started the third tranche on May 1.

Reports indicate that the 1.8 million SOL tokens sold in the second round saw the liquidators fetch approximately $232 million after a multi-week sale. While bids ranged from $85 to $110 per token, the ones that ranged above $95 were largely successful, based on the report, while the ones below $85 were rejected.

Notably, sales going for $95 per token represented a 26% discount, while the $110 per token price fetched a 15% discount. The discount was largely attributed to the fact that the tokens are locked, which means their availability for trading is delayed. The tokens acquired are subject to a four-year vesting schedule. Among those who participated in the second-round auction were Galaxy Trading and Pantera Capital.

In the first round of the auction, the FTX estate managed to sell $1.9 billion worth of SOL, which represented nearly two-thirds (2/3) of a larger lot valued at $2.6 billion. This included up to 30 million SOL tokens that were initially priced at $64 each.

As round three begins, Figure Markets CEO Mike Cagney has already confirmed that the firm will participate, adding that they are already developing a special purpose vehicle to facilitate bids. Specifically, their target is non-US as well as accredited US investors.

Solana price dips 21% in a week, rounding bottom pattern’s target objective delayed

Solana price is in a downtrend, trading with a bearish bias despite a hanging bullish reversal technical formation in place.  However, the bullish thesis is not invalidated given the position of the Relative Strength Index (RSI) above the mean level of 50. The Awesome Oscillator (AO) indicator is also still in positive territory, showing bullish sentiment continues to exist in the market.

Traders looking to take short positions on SOL should wait for the decisive close of the RSI below the mean level. Until then, Solana price could recover with a bounce of the RSI. The likely trigger for this would be a show of strength by Bitcoin price. Those waiting to take long positions for SOL should probably watch for a candlestick close above the neckline of the rounding bottom pattern at $126.86.

At the time of writing, the Solana price is trading at $123.00

SOL/USDT 1-week chart