Solana price hits October lows as sell pressure mounts ahead of 11.2m SOL unlock

Solana has undergone a sharp decline, going to its lowest level since November, because the sales pressure continues to rise in advance on a major token unlocking.

Since the editorial time, Solana (GROUND) Sitting at $ 135, down 15% in one day. On weekly and monthly deadlines, it decreased respectively by 17% and 56% Crypto.News.

This marks the lowest price of Solana since mid-October. The price crash occurs despite an increasing institutional interest for soil, with asset managers like Franklin Templeton and Vaneck recently depositing Fund negotiated in exchange for Solana.

This slowdown in Solana’s price can be linked to several factors, including the wider sale of the market, as evidenced by more than $ 325 billion wiped market capitalization of cryptography since Friday. Although Bitcoin (BTC) is relatively modest, Altcoins have taken greater success with Solana among the largest losers among the 10 best pieces by market capitalization.

Aside from the liquidations on a market scale, the agitation of soil price can be attributed to a slowdown in the request for parts even after Scandalwhich had been a Significant source of Solana’s activity Earlier this year.

For the future, the prices of the soil price remain down. Crypto Market Maker Wintermute recently withdrawn Over $ 38 million in Binance soil. It comes in the wake of the largest unlocking event of $ 2 billion soil chips Scheduled for March 1which will release more than 11.2 million ground tokens in circulation. The withdrawal may mean that Wintermute provides that the next token unlocking will have a more dropping pressure on Solana’s price.

In his Recent article on xCrypto Artchick.eth analyst stressed that over the next three months, more than 15 million soils – have estimated about 2.5 billion dollars – are in circulation. Many of these tokens were acquired at $ 64 per soil during FTX auctions by companies like Galaxy Digital, Pantera Capital and Figure. The concern that most of these companies are likely to sell their allowances because there is a minimum of incitement to hold soil given the worsening of the feeling of the market.

On the technical side, Solana is currently in a strong downward trend, exchanging well below its weighted mobile means of 50 days (196.38) and 200 days (198,63). A death cross is formed while 50 -day WMA crosses WMA for 200 days, indicating the probability more and more.

In terms of structure levels, the key support area to be monitored is around $ 130 to $ 140, with a potential drop to $ 120 if this level fails. The resistance is between $ 160 and $ 180, corresponding to the past consolidation zones.

To summarize, the sharp drop in Solana seems to be motivated by the next lockout of tokens, which will publish more than 11.2 million soil in circulation. With the removal of a large amount of soil, the sales pressure rises.

That said, the steep and aggressive sale pushed soil in the territory of occurrence, which could lead to a rebound in short -term relief. If sellers exhaust and buyers intervene at key support levels, a temporary rebound is possible. However, for any sustained recovery, Sol should recover resistance over $ 160 to move the feeling of the market in a more positive direction.