- Solana and Near Protocol prices plunged on Tuesday.
- There are fears of contagion as Alameda Research crisis continues.
Near and Solana prices crashed hard this week as contagion risks rose. Solana dipped to a low of $24.83, which was about 35% below the highest level this week. Similarly, Near Protocol price plunged to a low of $2.75, which was about 20% below the highest point this week. Other top laggards are FTT, HFT, Render Token, and Mask Network.
Alameda Research contagion risks
On Monday, we wrote about the ongoing plunge of FTT price. FTX Token is the native token for the FTX ecosystem. In the past few months, FTX has grown to become one of the biggest cryptocurrency exchanges in the world.
Alameda Research is a company owned by Sam Bankman Fried, the founder and CEO of FTX. This week, there have been concerns about a contagion in the crypto industry caused by Alameda.
The crisis started when CoinDesk published a report showing that Alameda owns FTT worth billions of dollars. In other words, FTX created FTT for its platform and then allocated the most to Alameda. As a result, Binance announced that it was selling its remaining FTT tokens.
Solana and Near prices crashed hard because Alameda Research is one of their biggest investors. As such, investors believe that the company, facing margin calls, could decide to liquidate some of its coins.
Learn more about how to buy Solana.
Notably, Solana price has crashed hard even after the positive news from Google. In a statement, Google said that it will become a Solana enterprise validator. And last week, Meta Platforms revealed that it will use Solana for its Instagram NFTs.
Near price prediction
The four-hour chart shows that the NEAR Protocol price has been in a strong bearish trend in the past few weeks, It managed to crash below all moving averages. At the same time, the Stochastic Oscillator moved below the oversold level. Therefore, the coin will likely continue falling as sellers target the key support at $2.50.
Solana price prediction
The 4H chart shows that SOL price has been in a strong bearish trend in the past few days. It has erased more than 35% from its highest point this month. The coin has moved below all moving averages while the Stochastic Oscillator has moved above the oversold level.
Therefore, I suspect that Solana will soon have a relief rally in the coming days. If this happens, it will likely retest the key resistance level at $32.
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