$SOL 11,2 million SOL tokens will be unlocked on March 1st. Will holders hold, short position, or will traders sell their Solana holdings before the distribution event?
Market Analysis
The problem in paradise is a fitting idiom to describe the current Solana ecosystem.
The extremely popular layer 1 token has attracted bad publicity due to the recent memecoin LIBRA fiasco, which involved the president of Argentina, insider trading, and over $4.3 billion wiped out in less than 24 hours.
While rival communities seized the opportunity to criticize Solana's recent troubles, a massive SOL token unlocking event has added more fuel to the fire, which could add selling pressure for the sixth largest cryptocurrency.
From a technical perspective, Solana's daily chart seems to have discounted, at least in part, the upcoming unlocking. The event has been public knowledge for some time, with many analysts discussing its potential effect, with prices falling 30% in the last month. Still, losing the support at $180 could exacerbate selling pressure and push prices toward the order block between $168-$155, formed in November 2024.