Date: Mon, February 24, 2025 | 02:50 PM GMT
In the cryptocurrency market, Solana (SOL) is facing sharp declines, dropping over 9% today and losing 16% and 9% in weekly and monthly gains, respectively. This comes as mounting pressure from upcoming large token unlocks weighs on investor sentiment.
Major Token Unlocks
A significant upcoming event is scheduled for March 1, 2025, where approximately 11.2 million SOL—valued at roughly $1.75 billion at current prices—will be unlocked. This represents about 2.23% of the total supply, making it one of the largest unlocks in Solana’s history.
Much of this SOL originates from FTX bankruptcy auctions, purchased at an average price of $64 by entities like Galaxy, suggesting potential profit-taking. This event is contributing to uncertainty and selling pressure in the market.
Is More Dip Ahead?
On Solana’s daily chart, after facing rejection from the ascending resistance trendline from its new all-time high of $295 on Jan. 19, SOL has been in a downtrend. The current bearish momentum has driven its price down to $153 today, after failing to hold support at $155.
The next major support lies around $126, a critical demand zone. The 50-week moving average, currently around $173, is now acting as overhead resistance. Furthermore, the MACD indicator is showing increased bearish momentum, with the signal line crossing below the MACD line, indicating that selling pressure remains dominant.
Final Thoughts
With the upcoming token unlock event and deteriorating technical indicators, Solana could be poised for further downside in the short term. However, strong demand zones near $126 and historical investor interest could provide a rebound opportunity if buying pressure increases at those levels.
Investors should closely monitor key support levels and broader market trends before making trading decisions.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.