Buying SOL now is in a 'danger' period, traders say it may drop further?
Despite Solana's current token inflation rate of 4.715%, over 15 million SOL tokens worth more than $7 billion will enter circulation in the next three months. After unlocking, approximately $1 billion worth of SOL tokens may also be generated through inflation and could potentially be sold off.
Cryptocurrency trader RunnerXBT also warns that buying Solana now is in a 'danger' period, as after unlocking, Galaxy, Pantera, and Figure may sell off their holdings.
However, the upcoming unlocked tokens only account for 2.31% of the total supply and total market cap, can the market digest the selling pressure, and when others fear, should I be greedy?
From a technical perspective, SOL's price has partially digested the impact of the unlocking event, but if it loses the $180 support level, selling pressure may intensify, and the price could drop to the $168-$155 range. If a bearish signal from the 200-day EMA appears, the price may significantly decline in the coming weeks.
