Solana's price has fallen to one of its lowest points in recent months due to the expected unlocking of a significant number of SOL tokens as part of the FTX bankruptcy.
Solana's Price Decline and Market Dynamics
Over the past 24 hours, Solana has dropped by 9%, and 27% over the week with the anticipation of the 11.2 million SOL token unlock. To date, 41 million SOL tokens have been sold to companies such as Galaxy Digital and Pantera Capital.
Factors Pressuring SOL's Price
The pressure on the price is attributed to the upcoming SOL token unlock from FTX and decreased activity on the platform, notably in the decentralized finance segment. The total value locked in the network fell to $6.8 billion from $12 billion within a month.
Technical Analysis and Future Prospects
Technical indicators signal high risk of further decline. Solana has breached the critical support level of $127. Subsequent support levels lie at $110 and $100. The relative strength index is heavily oversold, but this doesn’t necessarily indicate an immediate rebound.
Much depends on whether Solana can recover and surpass the $130 mark. Otherwise, downward pressure on the price may intensify.
