Solana’s price drops below $160 as the FTX unlock event looms, but analysts predict a potential rebound later in the year.
Solana Dips Below $160 Amid Market Uncertainty
Solana (SOL) has declined by over 7% in 24 hours, hitting its lowest price of the year at $158.70. The token has struggled to reclaim its $160 support level, reflecting broader market fears.
FTX Unlocking Event Raises Concerns
Solana’s price slump is tied to the upcoming March 1 FTX unlock, which will release 11.2 million SOL worth $1.77 billion into the market. Investors fear that this event could increase selling pressure, further driving prices down.
Declining DEX Activity Signals Market Weakness
Solana’s decentralized exchange (DEX) trading volume has dropped significantly. Weekly DEX volume fell by 36.7% to $16.6 billion, while daily volume stands at $1.5 billion, indicating reduced market activity.
Bullish Forecasts Despite Short-Term Pressures
Despite headwinds, analysts remain optimistic about Solana’s long-term potential. Investment firm VanEck predicts that SOL could reach $520 by the end of 2025, citing memecoin growth and institutional adoption as key factors.
Other forecasts suggest price targets between $280 and $340, while some analysts warn of a potential drop to $100 due to negative market sentiment around memecoin speculation.
Institutional Traders Take a Cautious Approach
Data from Deribit shows that 25% of all SOL options trades last week were block trades, totaling $32.39 million. 80% of these were put options, indicating that institutional investors are hedging against potential losses.
Solana’s Next Move Hinges on Market Sentiment
If Solana remains below $160 for too long, selling pressure could increase. However, if buyers re-enter the market, a rebound may follow. Investors are closely watching how Solana navigates this crucial test of resilience.
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