Solana (SOL) Eyes Rebound as FTX Unlocking Triggers Selloff Fears
Despite the negative outlook, the price of Solana is likely to reclaim new highs once FTX sell pressure clears.
Key Notes
The incoming FTX Solana unlock has stirred fresh price volatility.
Solana's price dropped below $160 amid the biggest stress test of the year.
With headwinds ahead, firms like VanEck see Solana hitting $520 this year.
Solana SOL$156.6 has fallen sharply, dropping more than 7% in 24 hours to reach $158.70, its lowest price this year. Per market data, the last time SOL went below $160 was on October 20, 2024, when it closed at $159.64. Despite brief attempts at recovery, the token remains stuck around the $159 price range. It is still unable to reclaim the crucial $160 support level.
Reason Why Sees Solana Heavy Losses This Month
Solana’s price has been dropping for a while. It has fallen nearly 13% in the past week and dropped by 35% in the last month.
Solana’s market cap is pegged at $78 billion, and its fully diluted value came in at $95 billion. This metric shows that the digital asset has lost significant value in a short span. Likewise, onchain data shows that the Solana decentralized exchange (DEX) activity has slowed down.
According to DeFiLlama data, Solana’s weekly DEX volume has dropped 36.7% to $16.6 billion. Its daily DEX volume is now at $1.5 billion, showing a big decrease in trading.
The main reason for Solana’s price drop is investors’ worries about the FTX derivatives exchange unlocking event on March 1. Reportedly, the defunct trading platform is set to release 11.2 million SOL worth $1.77 billion into the market.
has lost about $10 billion in market cap and fully diluted volume already, many fear that the FTX unlock event could trigger the biggest price drop recorded thus far this year.
Meanwhile, Coinspeaker has reported bullish and bearish predictions for Solana price in 2025 despite the headwinds ahead. As earlier highlighted, VanEck forecasted that Solana could reach $520 by the end of this year.
