Solana (SOL) is currently facing a challenging period as experts warn of a potential price drop to $125 if key support levels are breached. The cryptocurrency, which was recently trading above $250, has seen a significant decline to $169.19, down 4.69% in the past 24 hours. This drop below the crucial $170 support level has raised concerns among investors about the future trajectory of SOL.
Adding to the pressure on SOL is the upcoming release of 11.2 million tokens (approximately $9.7 million worth) into the market as part of FTX’s bankruptcy proceedings. This influx of tokens is expected to increase selling pressure at a time when demand for SOL is already weak. Furthermore, an additional $1.6 billion worth of SOL is set to unlock in March, posing further downside risks if demand does not pick up.
From a technical standpoint, SOL is currently stuck in a downward channel, indicating that sellers are still in control of the market. The next major support level for SOL is at $160, and if it holds, there is a possibility of a rebound to the $180-$185 range. However, if this support level is breached, the price could potentially drop to the $150-$155 range, with a worst-case scenario of a slide to $125-$130.
Investor confidence in SOL has also been shaken by recent scams such as $LIBRA, $TRUMP, and $MELANIA rug pulls, further contributing to the uncertainty in the market. Traders are now approaching the cryptocurrency with caution, waiting to see if buyers will step in around the $160 mark to support a potential rebound.
The future of SOL remains uncertain, with market sentiment already shaky and big token unlocks on the horizon. Whether Solana can hold its ground or if further losses are imminent remains to be seen. As investors and traders closely monitor the situation, the cryptocurrency market is bracing for potential volatility in the coming days.