Solana (SOL) dropped below $160 as FTX’s upcoming token unlock sparks fears of a sell-off, with investors bracing for impact.
Solana (SOL) just slipped under $160, and things aren’t looking great. The crypto tanked over 8% on Feb 24, hitting $148.46—its lowest price this year. Even now, it hasn’t fully bounced back, trading around $156.
The big worry? A massive 11.2 million SOL token unlock from FTX on March 1. That’s $1.77 billion worth of SOL potentially flooding the market. If too many tokens get dumped at once, prices could take another hit, making investors even more nervous.
Solana’s been struggling lately. It’s down 35% this month and lost 13% just last week. Its market cap shrank by $10 billion, now at $78 billion. Even trading on Solana’s DEXs has dropped by 37%, showing that investors are stepping back.
Whales are shorting SOL also. In the past week, put options (which pay off more if prices drop) constituted 25% of all transactions in Solana derivatives. In other words, whales expect continued losses.
Next? If unlocked tokens pour on the market, SOL can only go lower. But if buying is robust, then all this may calm down. Either or, everyone anxiously awaits March 1.
Also Read: Cardano (ADA) Slips Below $0.80 – Is a Steeper Decline Ahead?