Solana Slips Below $160 as FTX Unlock Sparks Sell-Off Worries

Solana (SOL) has slipped beneath $160, deed by capitalist anxiousness up of a large token unlock from FTX. On February 24, SOL fell implicit 8.20%, touching $158.46, its lowest level this year. It hasn’t managed to retrieve since and is presently trading astir $156.

Source: CoinMarketCap

The driblet comes arsenic 11.2 cardinal SOL tokens, worthy astir $1.77 cardinal are acceptable to beryllium unlocked connected March 1. These tokens are linked to FTX’s bankruptcy proceedings, and the fearfulness is that a ample information could beryllium dumped into the market, pushing prices down further.

Investor assurance successful Solana is dropping. Solana has mislaid 35% of its worth successful the past month, including a 13% dip conscionable past week. Its marketplace headdress has shrunk by $10 billion, present sitting astatine $78 billion. Trading enactment connected Solana-based decentralized exchanges (DEXs) is besides down by astir 37%, showing that investors are pulling back.

Meanwhile, large traders look to beryllium bracing for much downside. Data from Amberdata shows that enactment options, bets connected the terms dropping, accounted for 25% of each Solana-related derivative trades past week. This indicates that large investors, known arsenic ‘whales,’ are bracing for further losses.

What follows, depends connected the market’s effect to these freshly unlocked tokens. If excessively galore of them deed exchanges astatine the same time, it could deed SOL’s terms erstwhile more. But if request is sufficient, and buyers travel in, it could stabilize oregon adjacent recover.

With March 1 connected the horizon, each eyes will be connected the marketplace to spot what happens.

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