A recent price rally in the Solana (SOL<\/a>) market ran out of steam midway as traders\u2019 attention shifted to crypto-focused hedge fund Alameda Research\u2019s insolvency rumors.<\/p>\n On Nov. 7, SOL\u2019s 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%.<\/p>\n The beginning of SOL\u2019s plunge coincided with reports that Alameda Research has liabilities<\/a> worth $8 billion but may not have liquid assets on its balance sheet to meet those obligations. <\/p>\n Interestingly, the value of all those assets plunged synchronously in the past 48 hours \u2014 including SOL, as well as FTX Token (FTT<\/a>), Serum (SRM) and Oxygen (OXY) \u2014 on fears of cascading liquidation if Alameda Research becomes insolvent<\/a>.<\/p>\n 1. low liquidity tokens<\/p>\n $4.6bn of the assets are in low liquidity tokens:<\/p>\n \u26b0\ufe0f $SOL<\/a> other than SOL there is no way to liquidate the rest of the holdings without completely crashing the markets<\/p>\n the last 4 on the list are highly dillutive too!<\/p>\n \u2014 otteroooo (@otteroooo) November 7, 2022<\/a><\/p><\/blockquote>\n Nevertheless, traders showed interest in holding SOL\u2019s price above $30, a technical support level, on Nov. 7. One reason could be a flurry of optimistic news that emerged over the weekend<\/a>, including the launch of smartphones, DApp stores, and a Google Cloud partnership.<\/p>\n In addition, Solana continues gaining higher traction in the nonfungible token (NFT)<\/a> sector. For instance, the total number of NFTs released on the Solana blockchain is up 19.3% quarter-over-quarter to reach over 8 million in Q3 2022.<\/p>\n \u201cSeveral developments across Solana\u2019s NFT sector allowed it to maintain a strong position relative to a peer group of the top L1s by secondary NFT sales volume<\/a>,\u201d noted James Trautman, researcher at data resource Messari, adding: <\/p>\n \u201cSecondary sales volume managed to eclipse Ethereum in early September. The majority of the activity during that period took place on Magic Eden V2.\u201d<\/p><\/blockquote>\n On Nov. 2, Instagram added support for Solana-based NFTs<\/a>, enabling users to create, sell and market their favorite digital arts and collectibles.<\/p>\n As mentioned above, the SOL price\u2019s correction showed signs of exhaustion when it retested $30 as its support level on Nov. 7.<\/p>\n Since August 2022, two rebound moves from this support line saw SOL recovering to nearly $37, excluding one time when the price slipped toward $27.75 in October.\u00a0The same price ceiling, coupled with a multi-month descending trendline resistance, was instrumental in capping the Solana token\u2019s price rally in the week ending Nov. 6.<\/p>\nAlameda Research insolvency rumors affect SOL\u00a0<\/h2>\n
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\u26b0\ufe0f $SRM<\/a>
\u26b0\ufe0f $MAPS<\/a>
\u26b0\ufe0f $OXY<\/a>
\u26b0\ufe0f $FIDA<\/a><\/p>\nGoogle partnership, NFT growth<\/h2>\n
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50% SOL price rebound?<\/h2>\n
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