Solana’s [SOL] Upcoming Token Unlock Raises Concerns of a Potential Price Decline

Solana’s [SOL] upcoming token unlock has garnered significant attention from crypto enthusiasts due to fears of a potential price decline.

Solana’s (CRYPTO: SOL) upcoming token unlock has attracted attention due to concerns over a potential price decline.

According to data from the token unlocks dashboard, 524,030 SOL, valued at $81.56 million, will be unlocked and released into the circulating supply between Oct. 1 and Oct. 7.

However, the upcoming unlock represents a small portion of Solana’s total circulating supply at 0.11%.

Following this report, there is a possibility that SOL could experience selling pressure and a price decline in the coming days.

Generally, a token unlock is often viewed as a bearish market sign, as the increase in available supply in the market may lead to selling pressure.

Current market sentiment

Solana’s Total Value Locked (TVL) showed an increase of 2.75% over the last 24 hours, indicating a positive sentiment among traders.

According to data from DeFiLlama, Solana’s TVL was $5.506 billion at press time.

A technical analysis by AMBCrypto showed SOL was in an uptrend as it was trading above the 200 Exponential Moving Average (EMA) on a daily time frame.

The 200 EMA is a technical indicator that is used to determine whether an asset is in an uptrend or downtrend.

Based on recent performance, there is a high possibility that SOL could initially reach the resistance level of $165.

If SOL breaches this resistance level and closes a daily candle above the $170 level, there is a strong possibility that the token could rally by another 15% in the coming days.

Bullish on-chain metrics

This positive outlook was further supported by on-chain metrics. According to data from the on-chain analytics firm Coinglass, SOL’s Long/Short Ratio was 1.019 at press time, indicating a bullish market sentiment.

Additionally, its Futures Open Interest increased by 2.2% in the past 24 hours and continued to rise, suggesting that traders were potentially building long positions.

At press time, SOL was trading around $157 after a price surge of 0.25% in the last 24 hours.

During the same period, its trading volume increased by 5.6%, indicating higher participation from traders and investors amid ongoing market reversal.

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