Solana (SOL) faces a pivotal moment as it approaches a massive token unlock worth $1.77 billion on March 1, 2025. The cryptocurrency currently tests critical support levels while market sentiment remains cautious.
Technical Analysis Shows Weakening Support
SOL trades near $157, identified as the last major support level by crypto analyst Koroush Khaneghah. The price has declined significantly from its January peak of $295. A failure to hold current levels could trigger further drops toward $127.
The key resistance level sits at $180.58. SOL needs to reclaim this level to shift market sentiment from bearish to neutral. Recent price action shows repeated rejections at this threshold.
Token Unlock Impact
The upcoming unlock of 11.2 million SOL tokens represents a significant market event. Many traders have started front-running the unlock by taking short positions. However, experienced analysts warn against opening new shorts at current levels.
Market data reveals aggressive shorting and spot selling phases throughout February. The Cumulative Volume Delta (CVD) indicates limited new long accumulation, suggesting trader hesitancy.
Market Implications
The token unlock could trigger increased volatility. However, contrarian opportunities may emerge after the event. Traders attempting to catch every small price drop risk frequent liquidations.
Open Interest (OI) data shows significant position closures since January. SOL’s price movements have closely followed Bitcoin’s trajectory, indicating strong correlation with broader market sentiment.
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At $158, SOL stands at a critical juncture. The market’s reaction to the token unlock will likely determine its short-term trajectory. Traders should exercise caution and maintain appropriate position sizing.
Tags: Solana, Token Unlock, Crypto Trading, Technical Analysis, Market Analysis
Source: NewsbtC