Solana Price Tests $112 Support: Key Token Unlock Could Signal Bottom

Solana (SOL) is showing signs of potential bottoming action at a critical support level, as leading crypto analysts weigh in on the impact of a major token unlock event. The latest technical analysis and on-chain data suggest SOL could be approaching a decisive moment that will determine its next major move.

Renowned crypto analyst Scott Melker (The Wolf Of All Streets) has identified what he describes as a “picture perfect bounce” off the $112 support level for SOL. According to his analysis shared on X, this technical setup could evolve into a bullish double bottom pattern – but only if certain conditions are met.

Critical Technical Levels to Watch

“A double bottom would confirm with a break above $147, the swing high between the two bottoms,” Melker explained, cautioning traders against premature pattern confirmation. The current price action shows SOL needs to clear two key resistance levels:

• Initial resistance: $130 (downtrend line)
• Pattern confirmation: $147 (previous swing high)

Major Token Unlock Event

The technical analysis comes amid a significant token unlock event for Solana, with on-chain intelligence firm Arkham reporting $200 million worth of SOL being unlocked on April 4th – the largest single-day unlock until 2028. This represents:

• 4 accounts unlocking tokens staked since April 2021
• Initial stake value: $37.7M
• Current value: 5.5x increase

Market Sentiment Analysis

Trader NooNe0x offered an optimistic perspective on the unlock event, noting that it represents 40% of remaining locked tokens, with the ecosystem now 78% through total unlocks. Only smaller unlock events remain scheduled for May, June, and December.

However, APG Capital’s Awawat struck a more cautious tone, highlighting SOL’s precarious position: “SOL absolutely shrekt – broke 170 range low, bounced at 120 a few times – now holding above 100 but the ice is thin.”

FAQ: Solana Token Unlocks

Q: What happens during a token unlock event?
A: Previously locked or staked tokens become available for trading, potentially increasing selling pressure if holders choose to liquidate.

Q: How do unlock events typically affect price?
A: Markets often “price in” potential selling pressure before the actual unlock, with prices frequently stabilizing or recovering afterward if massive selling doesn’t materialize.

Q: What’s the significance of the $112 support level?
A: This price point has acted as strong technical support, with multiple bounces suggesting significant buyer interest at this level.

At press time, SOL trades at $115, with market participants closely monitoring whether the critical $112 support level will hold amid increased unlock-related volatility.