Solana Plunges Below $130 Ahead of Major Token Unlock

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Solana Plunges into the Abyss: Will it Ever Recover? 🤯

As the calendar flips to March, Solana has taken a nosedive, plummeting to a dismal $126, its lowest price since the halcyon days of mid-October. 📉 It seems the investors are bracing themselves for the impending 11.2 million SOL token unlock from the FTX bankruptcy estate, a prospect that has sent shivers down the spines of even the most stalwart crypto enthusiasts. 😱

According to the trusty crypto.news price tracker, Solana (SOL) has taken a 9% hit in the last 24 hours and a whopping 27% over the past week, with concerns growing over the specter of additional selling pressure. FTX, once the proud holder of a substantial SOL stash, has been busily unloading its assets to repay creditors as part of its bankruptcy process. 💸

So far, a staggering 41 million SOL tokens have been sold off to firms like Galaxy Digital, Pantera Capital, and Figure. The next scheduled unlock on March 1, totaling $11.2 million SOL or around $1.3 billion at current prices, has raised fears of a possible sell-off. This has added downward pressure on SOL in an already weak market, a perfect storm of woe for the beleaguered cryptocurrency. 🌪️

Meanwhile, activity on Solana’s decentralized finance landscape has taken a nosedive. The network’s total value locked has plummeted from $12 billion in mid-January to a paltry $6.8 billion on Feb. 28, according to DeFiLlama data. The demand for SOL has also taken a hit as a result of the recent downturn in memecoin trading, which once fueled huge trading volumes. 🚨

And if that weren’t enough, technical indicators suggest that Solana has broken below the crucial support level of $127, with the next significant levels at $110 and $100 looming large on the horizon. Although the relative strength index is at 23.92, indicating severe oversold conditions, this does not always signal an immediate bounce. 🤔

Bollinger Bands display massive volatility, but red candles continue to dominate trading activity, suggesting strong selling pressure. SOL might move toward the $110–$100 range if it continues to break below $127, but if momentum changes, it might recover to the $150–$166 range. Traders are watching for a decisive move as Solana tests key levels. 🤝

At the same time, Counglass data indicates that open interest in Solana futures has drastically decreased, from $7.4 billion in mid-January to $3.7 billion on Feb. 28. This suggests that leveraged positions have been significantly reduced. 📉

Although institutional firms such as VanEck and Franklin Templeton have filed for Solana ETFs, there are still no immediate catalysts as ETF approvals might take some time. If SOL fails to reclaim $130, the downtrend may accelerate, putting the $100 level in focus. 💔

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2025-02-28 11:32