The upcoming unlocking of Solana’s SOL tokens has attracted considerable interest from the cryptocurrency community, with concerns over a potential decline in price.
Solana’s Token Release
Recent data from the token unlocking dashboard reveals that 524,030 SOL tokens, valued at $81.56 million, are scheduled to be released into circulation between October 1st and 7th.
Nevertheless, this release constitutes only 0.11% of Solana’s total circulating supply.
Following this information, there is a strong likelihood of SOL facing downward pressure and a price decrease in the near future.
Typically, token unlocks are viewed as bearish indicators due to the rise in available supply, leading to increased selling pressure in the market.
Current Market Sentiment
In the last 24 hours, Solana’s Total Value Locked (TVL) has risen by 2.75%, reflecting positive sentiment among traders. DeFiLlama data indicates the current TVL for Solana stands at $5.506 billion.
As per CryptoCrypto’s technical analysis, SOL is on an upward trend, trading above the 200 Exponential Moving Average (EMA) on a daily basis.
The 200 EMA is a technical tool that helps determine whether an asset is in an uptrend or downtrend.
Given recent performance, there is a high chance that SOL may first reach the $165 resistance level.
If SOL surpasses this resistance and closes a daily candle above $170, there is a good probability of the token rallying by another 15% in the days ahead.
Bullish On-Chain Indicators
This optimistic outlook is reinforced by on-chain metrics. Coinglass data shows that SOL’s Long/Short Ratio was at 1.019, indicating bullish sentiment.
Moreover, Futures Open Interest for SOL has risen by 2.2% in the past day, suggesting traders are possibly taking long positions.
At present, SOL is trading around $157, following a 0.25% price uptick in the last 24 hours.
During this period, trading volume also increased by 5.6%, signifying greater involvement from traders and investors amid the ongoing market reversal.