Solana continues to lose ground as upcoming events add pressure to the market.
Current Solana Market Status
The price of Solana has decreased to $126, hitting its lowest since mid-October. This is due to the impending unlock of 11.2 million SOL tokens. According to CoinMarketCap, Solana has dipped about 9% in the past 24 hours and around 27% in the last week. A prime holder, FTX, has been selling off assets to repay debts during bankruptcy proceedings. Approximately 41 million SOL tokens have already been sold to companies like Galaxy Digital and Panthera Capital.
Impact on DeFi and TVL
This has created downward pressure in an already weak market. Activity in Solana's decentralized finance landscape has decreased. The total value locked (TVL) of the network slumped from $12 billion in the middle of last month to $6.8 billion on February 28, as per DeFiLlama report. The demand for Solana has also declined due to the recent downturn in memecoin trading. Technical indicators point to another downside risk.
Market Outlook and Forecasts
Solana broke through the critical level of $127, with upcoming significant marks at $110 and $100. The relative strength index (RSI) is at 23.92, signaling extreme oversold conditions. Although this does not always indicate a quick bounce, it is important to note that the RSI value can remain low for extended periods without significant price changes. Traders are watching for a decisive move as Solana tests major levels. Open interest in Solana futures has slumped, but institutional companies such as VanEck and Franklin Templeton are still interested in Solana ETFs.
If Solana fails to return to $130, the downtrend may increase, focusing attention on the $100 level.
