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Solana has fallen to $126, its lowest price since mid-October, as investors prepare for an upcoming 11.2 million SOL token unlock from the FTX bankruptcy estate.
According to crypto.news price tracker, Solana (SOL) has dropped 9% in the last 24 hours and 27% over the past week, with concerns growing over additional selling pressure. FTX, once a major holder of Solana, has been selling off assets to repay creditors as part of its bankruptcy process.
So far, 41 million SOL tokens have been sold 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.
Additionally, activity on Solana’s decentralized finance landscape has declined. The network’s total value locked has dropped from $12 billion in mid-January to $6.8 billion on Feb. 28, according to DeFiLlama data. The demand for SOL has also reduced as a result of the recent downturn in memecoin trading, which once fueled huge trading volumes.
There is more downside risk, according to technical indicators. Solana has broken below the crucial support level of $127, with the next significant levels at $110 and $100, 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 $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.
This article first appeared at crypto.news
