The current market analysis indicates a continued decline in Solana's (SOL) price, driven by the upcoming significant token unlock event.
Reason Behind Solana (SOL) Price Drop
The primary reason for Solana's recent price decline is the bearish market sentiment and the anticipated release of a large volume of tokens. According to the latest figures, 11.2 million SOL worth $1.7 billion is set to be unlocked on March 1, 2025, adding pressure to the market.
Current Price Momentum
SOL is currently trading near $157.90, showing a decline of over 7% in the past 24 hours. However, during this period, trading volume surged by 157%, indicating increased trader activity in a bearish market.
Technical Analysis and Upcoming Levels for Solana (SOL)
According to technical analysis, SOL's price is losing its key support at $155, and if it breaches this level, a further decline to $120 is possible. Currently, the token trades below the 200-day EMA, supporting the downtrend view.
The situation around Solana (SOL) remains tense due to the upcoming token unlocks, creating increased market pressure. However, recent outflows from exchanges might indicate potential for accumulation and future growth.
