Solana (SOL) Will Lead August's +$2 Billion Worth of Token Unlocks
- 王林Original
- 2024-08-18 06:22:23682browse
Solana [SOL] will lead August’s +$2 billion worth of token unlocks. Nearly $340 million of SOL tokens will hit its supply circulation.
Solana [SOL] will witness token unlocks worth over $2 billion. Nearly $340 million of SOL tokens will enter its circulating supply.
In fact, as per Token Unlocks data, SOL will be observing the highest issuance in August, which may further impact prices amidst markets that have largely been choppy.
Reacting to the massive token unlocks, Wazz Crypto, a market analyst and commentator, stated that the trend could get more predatory and accelerate token ‘dumps.’
“In my opinion, token unlocks will only get more predatory as time goes on. investors/team racing to dump as they realise that there’s really no demand for the infinite tokens being minted.”
At press time, speculators’ sentiment on SOL was neutral, as indicated by the neutral reading of the weighted sentiment on Santiment.
However, investors and traders have been de-risking themselves from the altcoin, as indicated by massive spot outflows this week.
For instance – Since 12 August, SOL has witnessed $77 million in net outflows, as per Coinglass data. In the previous week, the altcoin saw $182 million in outflows, highlighting an overall risk-off approach from investors in August.
This risk-off approach saw SOL drop from $185 in early August to below $150, at press time.
Hence, the $340 million supply overhang from token unlocks could further drag an already weak investor sentiment. Unless Bitcoin [BTC] spearheads the market recovery and boosts SOL in the remaining two weeks, the altcoin’s price could be set to slide lower on the charts.
Which levels are crucial to keep an eye on?
The buying pressure and overall demand were muted on the daily charts, as indicated by the downsloping CMF (Chaikin Money Flow) and RSI (Relative Strength Index).
Meanwhile, the weekly bullish order block (OB), the higher timeframe support, and above $100 and $128 were key levels to assess for a better discount on SOL.
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