Solana (SOL) is experiencing a continued price drop due to several factors, including its association with the Lazarus Group and an upcoming token unlock.
Solana Price Decline
Since January 19, SOL has lost nearly 47% of its value, reaching approximately $157.25 by February 24. Recently, SOL saw an additional drop of 7.35%, marking its lowest since November 6. Key factors of the decline include its reported ties to the North Korean-backed Lazarus Group and the upcoming token unlock valued at $1.79 billion, scheduled for March 1. These events raise investor concerns about possible selling pressure and further price reduction.
Technical Analysis
The open interest in the futures market for SOL has decreased from $8.57 billion on January 17 to $5.11 billion by February 24, indicating a decline in speculation on SOL's price appreciation. Technical analysis also indicates a bearish trend: the SOL chart shows a 'head-and-shoulders' pattern, suggesting a potential drop to $110 if the break below the $177 support level holds.
Overall Conclusions
The overall sentiment around Solana remains negative due to hacks, impending token unlock, and low futures activity. Current technical indicators and decreased interest in network memecoins further weigh on SOL's price. Investors remain cautious, waiting for definitive signals of either further decline or a potential rebound.
Despite the prevailing negative factors exerting pressure on SOL's price, a technical rebound remains possible if the support level holds.
