Ongoing Market FUD to Result in More Altcoin Rebound ⋆ ZyCrypto


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SOL, the native token of the Solana blockchain, has been rising in price in the past few hours. According to crypto market intelligence platform Santiment, this rally could continue until short traders turn around their negative sentiment on the popular altcoin.

Santiment noted in a cheep that, at present, Solana does not have many big believers, as Fear, Uncertainty, and Doubt (FUD) saw traders start massively shorting SOL on Binance around four days ago.

However, the SOL price appears to have bottomed out at $11.02 and has recovered to more than $12.70 in a 15-hour period, Santiment noted.

“There aren’t many big believers in #Solana, even as its price bottomed out at $11.02 and rallied to $12.70 in the last 15 hours. This #FUD could cause more bounces until traders slow down their near-unanimous bets against the $SOL price,” Santiment wrote.

Much of the negative sentiment around Solana and SOL has stemmed from Solana’s ties to the collapsed FTX exchange. The Solana Foundation detailed in a recent blog post which had approximately $1 million in cash or equivalent assets in FTX as of November 6 that are now stuck.

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The publication also revealed that FTX and sister firm Alameda Research have more than 50 million SOLs. While most of the SOL supports were granted, it did not stop investors from fearing the worst and looking to exit their positions of SOL and other Solana ecosystem tokens on exchanges.

Solana’s blockchain ecosystem continues to move forward with developments

Despite the day’s price increase, SOL is down about 50% in the last month and about 92.4% since the start of the year. However, this has not stopped the development of the Solana ecosystem.

Early last month, Solana Labs released an update to the Solana blockchain node software. In a tweet, blockchain startup co-founder Anatoly Yakovenko urged validators to update to the new version of the node software, adding that the update should fix all of Solana’s network outage issues caused by overloading of UDP-based protocols.

Previously, the issue had caused lengthy shutdowns and reboots of the Solana network. According to data from Solana’s blockchain explorer Solscan, 60.82% of 2,341 blockchain validators have upgraded to the latest version of the node. About 11% and 7.5% are still running two older versions of the node software.