Why is Solana (SOL) Price Falling Today?
Amid market uncertainty, Solana (Sol) is the fifth largest cryptocurrency in the world, divided by bearishness and is expected to continue to decline in the coming days. With this noteworthy decline, SOL 37% loss experienced in the last 30 days.
The reasons behind the price drop in Solana (Sol)
However, the main reason for the price decline appears to be the ongoing bearish market sentiment, which is about to issue billions of dollars in SOL for exchange next month.
According to the latest report, the cryptocurrency market will witness $11.2 million SOL tokens worth $1.7 billion on March 1, 2025. Additionally, smaller unlocks will follow on April 1 and May 1, adding $13.75 million to the supply.
On March 1, this massive token unlocking has begun to affect Solana’s price, which may explain the 37% drop in February.
Current price motivation
SOL is currently trading at close to $157.90, down more than 7% in the past 24 hours. However, during the same period, its trading volume soared by 157%, indicating that traders and investors’ participation increased in the context of bearish market sentiment.
Solana (Sol) technical analysis and upcoming levels
According to expert technical analysis, the price of SOL appears to have lost vital support, at $155. Based on recent price action and historical patterns, if Sol successfully violates this critical support and closes daily candles under $155, we can see the price drop by more than 22%, reducing it to $120.
Currently, SOL trades below the 200 moving average (EMA) in the daily time frame, indicating that the assets are on a downward trend.
$77 million worth of SOL outflow
According to Chain Analytics, whales and long-term holders appear to be accumulating SOL despite bearish price action and market sentiment caused by the upcoming token release of billions of dollars. Small shop. Data from spot inflows/outflows suggests that the exchange’s outflows have been valued at over $77 million in the past 24 hours.
The massive outflow of communication indicates potential accumulation, which can create buying pressure.
