Solana Unlock Event: Market Panic or Strategic Entry Point?
Unlocking Insights: Only 12.1 million SOL tokens have been unlocked, representing just 2.6% of the total supply, which is far less than what the market had anticipated. Additionally, the 42 million SOL associated with the FTX bankruptcy will be released in gradual stages, with less than 1 million tokens expected to be unlocked monthly starting in 2025.
Market Activity: A substantial $210 million in buy orders have been placed within the $150-$160 price range, with market maker Wintermute purchasing 270,000 SOL contrary to market sentiment. The futures funding rate is currently sitting at -0.03%, signaling that short positions have been exhausted, creating a high potential for a short squeeze.
Technical Indicators: The weekly support is found at $148, and the daily Relative Strength Index (RSI) has fallen to 32, indicating that the asset is oversold and the likelihood of a rebound is over 70%. A drop below $145 could trigger a massive $280 million in liquidations from leveraged long positions, which could provide an opportunity for market makers to clean up positions.
🚀 Actionable Strategy:
Current Price ($150): Consider a regular investment with a 10% position, and hedge by buying $150 put options for added protection.
Breaks Below $140: Increase your position with a 40% allocation to capitalize on panic selling.
Breaks Above $175: Focus on trend-following with a 30% position, taking profits in stages at $180, $200, and $220.
⚠️ Risk Considerations:
There's a 15% chance of an over-the-counter sell-off from FTX trustees. Additionally, any future Solana network issues could result in a crisis of trust. It's wise to reduce leverage before the US CPI data release on March 12.
👉 Stay tuned and follow for more insights—your support means a lot! Thank you!
