TLDR
- Solana’s price has dropped to $158.46, breaking below the crucial $160 support level for the first time since October 2024
- The cryptocurrency faces pressure from an upcoming 11.2M SOL token unlock worth $1.77B from FTX holdings
- Market data shows mounting long liquidations of $21M as prices declined, with more potential liquidation points ahead
- Solana’s ecosystem metrics show declining activity with DEX volume down 36.7% to $16.6B weekly
- Options trading data reveals heavy put option activity, suggesting traders are hedging against further downside
The cryptocurrency market is witnessing a notable shift as Solana (SOL) breaks below the $160 price level, marking its lowest point in 2025. The digital asset recorded a sharp 7% decline on February 24, settling at $158.46 and breaking through a support level that had held since October 2024.
Market data reveals a broader pattern of decline, with Solana experiencing a 6.9% decrease over the past 24 hours. The token’s performance has particularly struggled in recent weeks, showing a 13% decline over the past seven days and an even more pronounced 35% drop over the monthly timeframe.
The immediate catalyst for market concern appears to be the approaching token unlock event scheduled for March 1. This event will release approximately 11.2 million SOL tokens, valued at $1.77 billion, from the FTX bankruptcy auction holdings into potential circulation.
Trading volumes across Solana’s decentralized exchanges have shown corresponding weakness. According to DeFi Llama’s data, weekly DEX volume has contracted by 36.7%, now standing at $16.6 billion. Daily trading volume has settled at $1.5 billion, reflecting reduced market activity.
The price movement has triggered a cascade of market reactions. Long liquidations totaling $21 million occurred as SOL fell through the $160 level. The liquidation map indicates further pressure points concentrated between $120 and $160, suggesting potential additional forced selling if prices continue lower.
Options market activity provides additional insight into trader sentiment. Recent data from Amberdata shows SOL block trades on Deribit represented nearly 25% of all Solana options activity last week, reaching $32.39 million out of a total $130.74 million in trades.
Particularly noteworthy is the concentration of put options, which account for approximately 80% of block trades. This pattern typically indicates large investors seeking downside protection against potential market volatility.
Market Analysis
The market capitalization metrics reflect the scale of recent changes. Solana’s market cap now stands at $78 billion, with a fully diluted valuation of $95 billion. This represents a reduction of nearly $10 billion since February 24, highlighting the magnitude of the recent market movement.
Technical analysis from market observers, including X platform analyst Crypto_McKenna, suggests Solana has entered bearish territory after failing to maintain support at the $167-$169 range. The analysis points to potential further declines toward the $112-$126 zone if current conditions persist.
Against this backdrop of market pressure, developments within the Solana ecosystem continue to evolve. PumpFun, a platform specializing in meme coin launches on Solana, has begun testing its own Automated Market Maker (AMM) liquidity pools, introducing a beta version for SOL and meme coin trading pairs.
The timing of this infrastructure development coincides with broader market challenges, including reports of a Bybit hacker utilizing Solana meme coins to launder stolen funds, which has contributed to negative market sentiment.
Historical price data shows the last time SOL traded below $160 was October 20, 2024, when it closed at $159.64. The current price action represents a test of these previous support levels.
Market participants are closely monitoring the behavior of institutional buyers who acquired tokens through the FTX bankruptcy auction. Their decision to hold or liquidate positions following the March 1 unlock could substantially influence price direction.
The combination of technical indicators and market metrics suggests a critical period ahead for Solana. The confluence of the token unlock event, declining network activity, and technical support levels creates a complex market environment.
Current trading patterns indicate weak buying support at present levels, with the potential for increased volatility as the market approaches the March token unlock date.
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