The recent unlocking of a large amount of Solana tokens from FTX/Alameda raises concerns about market stability despite a recent price surge. Understanding the current market conditions is crucial for investors.
Token Unlocking and Its Market Impact
FTX/Alameda unlocked 186,326 Solana tokens, equivalent to approximately $21,500,000. This event may prompt investors to consider selling their holdings as the market reacts to the release. Token unlocks often lead to an oversupply, creating downward pressure on prices.
Current Market Situation and Price Patterns
On the 4-hour chart, a rising wedge pattern can be observed, which typically indicates a price breakdown may occur. As prices increase, declining trade volumes suggest waning interest from traders. Solana is currently at the upper boundary of this wedge, highlighting the need to watch for a potential breakdown below the lower trendline.
Solana Price Forecast and Market Outlook
Under the current circumstances, the unlocking event could push Solana's price down towards the $96 level. If the support level at $120 cannot be maintained, further declines are likely in the short term. Given the increased supply from FTX/Alameda, should the market struggle to absorb this, Solana may experience significant price volatility.
The release of tokens by FTX/Alameda and the current market formation highlight risks for Solana. It is essential for investors to closely monitor the situation as future actions may affect price expectations.
