Solana Could Be in Trouble as $340 Million SOL Unlock Looms on the Horizon
The post Solana Could Be in Trouble as $340 Million SOL Unlock Looms on the Horizon appeared on BitcoinEthereumNews.com.
Solana investors are concerned as they face an impending unlock of $340 million worth of SOL tokens. With that many new tokens entering circulation, investors are concerned about increased selling pressure on Solana, which could drive the price down in an already volatile market. Meanwhile, the new ETFSwap (ETFS) presale has drawn in more investors as Solana records outflows. This trend could indicate a shift from current volatile conditions on the altcoin to a more promising opportunity in ETFSwap (ETFS). Investors Panic As Data Suggests Potential Sell-Off On Solana Data from TokenUnlocks suggests that Solana is set for the biggest altcoin token issuance of the month, which could significantly impact its price. The upcoming $340 million token unlock has triggered a shift in Solana’s price action, causing traders and investors to pull back from the altcoin. Crypto analyst Wazz Crypto believes that the token unlocks have become aggressive over time, leading to accelerated sell-offs as holders realize that there is little demand for the continuously mined tokens. Although Solana bounced back to $161 from its lows of $112 caused by market-wide price dumps on August 5, the altcoin appears to remain on a bearish trend. Following $182 million recorded outflows on Solana, according to data from Coinglass, the altcoin has experienced $77 million in outflows since August 12. This data indicates the risk-averse approach by crypto investors in August, following the huge bearish hit at the beginning of the month. As of this writing, Solana (SOL) is trading at $144, showing more than a 20% price decline from its monthly high of $185. Experts believe that the upcoming $340 million worth of SOL tokens further aggravates investment sentiment, which could only be restored if Bitcoin (BTC) leads a market recovery. That being, Solana investors are making a quick shift to…
Filed under: News - @ August 22, 2024 12:13 pm