Amid market uncertainty, Solana (SOL), the world’s fifth-largest cryptocurrency by market cap, appears bearish and is poised to continue its decline in the coming days. With this notable drop, SOL has experienced a significant 37% loss in the past 30 days.
Reason Behind Solana (SOL) Price Drop
However, the primary reason for the price drop appears to be the ongoing bearish market sentiment and the upcoming release of billions worth of SOL onto exchanges next month.
According to the latest report, the crypto market is set to witness an unlock of 11.2 million SOL tokens worth $1.7 billion on March 1, 2025. Additionally, smaller unlocks will follow on April 1 and May 1, adding $13.75 million to the supply.
This substantial token unlock on March 1 has already begun impacting Solana’s price, which may explain February’s 37% decline.
Current Price Momentum
SOL is currently trading near $157.90 and has dropped over 7% in the past 24 hours. However, during the same period, its trading volume surged by 157%, indicating heightened participation from traders and investors amid bearish market sentiment.
Solana (SOL) Technical Analysis and Upcoming Levels
According to expert technical analysis, SOL’s price appears to be losing its crucial support at $155. Based on recent price action and historical patterns, if SOL successfully breaches this key support and closes a daily candle below the $155 mark, we could see a price drop of over 22%, bringing it down to the $120 level.
Currently, SOL is trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating that the asset is in a downtrend.
$77 Million Worth of SOL Outflow
Despite the bearish price action and market sentiment driven by the upcoming token unlocks worth billions, whales and long-term holders appear to be accumulating SOL, according to on-chain analytics firm Coinglass. Data from spot inflow/outflow reveals that exchanges have seen an outflow of over $77 million worth of SOL in the past 24 hours.
This significant outflow from exchanges suggests potential accumulation, which could create buying pressure.
