Solana (SOL) recently experienced a surge in price, breaking the $4,500 barrier, but concerns remain surrounding potential sell pressure from institutions. A large-scale unlock of tokens from FTX and Alameda Research, totaling approximately $21.5 million, has sparked speculation about market performance. 186,326 SOL tokens were unlocked as part of this process. 186,326 SOL tokens have been unlocked, and while these unlocks are not unprecedented, they could lead to a temporary decline in price.
The source: @lookonchain | X
Sam Bankman-Fried’s and Alameda Research, who were major holders of Solana before their collapse, will be selling off significant amounts of the SOL token now. While this could signal an immediate drop in price, Solana has a track record of demonstrating resilience in the market.
Analysts point out that high volume is crucial in determining if the price surge will hold, with some warning of potential volatility and downward pressure from sellers who may be taking advantage of this situation.
The rising wedge pattern on Solana’s 4-hour chart indicates a possible bearish trend. While there have been gains recently, the chart suggests a break below the lower trendline in the coming days.
Despite recent price fluctuations, the outlook for Solana remains uncertain. The increasing supply of SOL tokens as a result of these unlocks could lead to downward pressure on prices, especially if institutions begin selling off. However, if Solana can navigate this challenging period and prove its resilience in the face of market volatility, it might hold steady at around $120-$124 over the short term.
The article highlights that while recent price increases signal hope for SOL, there’s a risk of downward pressure from institutional selling. The future of Solana rests on navigating this balance and maintaining stability in the face of challenging market dynamics.