- Solana’s price plummeted below $150, reaching $137.77, marking a nearly 20% decline in 24 hours.
- An upcoming token unlock of 11.2 million SOL on March 1st from FTX bankruptcy proceedings creates selling pressure.
- Network activity shows significant decline with daily active addresses dropping from 5.7M to 3.5M in four weeks.
- Recent ecosystem issues, including the LIBRA token crash and Bybit hack, have affected market confidence.
- Technical analysis suggests potential support levels at high $130s, with next major support at $118-122.
Solana’s native token SOL experienced a sharp decline on Monday, February 24, breaking below the crucial $150 level amid multiple bearish catalysts. The digital asset reached a low of $137.77 by 6 p.m. EST, according to Coinbase data from TradingView, representing a nearly 20% drop from its previous day’s high of $170.
The primary concern driving the selloff centers on the imminent release of tokens from FTX’s bankruptcy proceedings. Joe DiPasquale, CEO of BitBull Capital, explains: “The upcoming March 1st token unlock will release around 11.2 million SOL tokens, increasing selling pressure.” Additional smaller unlocks scheduled for April (12,700 SOL) and May (73,700 SOL) further compound market anxiety.
Network metrics paint a concerning picture of declining activity. According to Blockworks Research, Solana’s stablecoin transfer volume has dramatically decreased from $395 billion to approximately $7 billion. Furthermore, application revenue fell from $58.4 million on January 20th to $4.5 million on February 23rd.
Recent ecosystem troubles have amplified negative sentiment. The LIBRA token incident, which saw its market cap plummet from $4.6 billion to under $100 million, dealt a significant blow to confidence. Alex Lin of Reforge notes: “High-profile scams and rug pulls associated with tokens launched on Solana have contributed to declining network activity and trust.”
Technical analysts identify critical support levels ahead. Armando Aguilar, an independent cryptocurrency analyst, points to support in the high $130s, with secondary support at $118-122. Tim Enneking of Psalion raises concerns about the psychological $100 level holding amid the bearish developments.
The broader cryptocurrency market downturn compounds Solana’s challenges, with CoinMarketCap data showing seven of the top ten cryptocurrencies recording losses in the past 24 hours, excluding major stablecoins.
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