Solana is currently facing bearish market sentiment, with a potential fall back to $100 looming. The asset has lost nearly 18% in the past month and has continued to decline over the past 24 hours. This downward trend is further exacerbated by a massive token unlock scheduled for April 4, which could inject $200 million worth of SOL into the market, potentially causing a further drop in price.
According to recent market analysis, four whales holding significant amounts of SOL are set to unlock their tokens, leading to an increase in the token supply. This influx of supply, coupled with the current bearish sentiment in the market, could result in a further decline in SOL’s price, as the demand may not be enough to absorb the additional tokens. The lack of a market buyback potential further supports the notion of a continued downward trajectory for SOL.
Market indicators suggest that the demand for SOL is currently low, with a significant drop in daily transactions observed in recent days. This decline in activity indicates a negative sentiment among market participants, potentially leading to further selling pressure on the asset. The divergence between decentralized exchange trading volume and price decline also highlights the strong selling momentum behind SOL, further supporting the bearish outlook.
The current technical analysis of SOL’s price action points towards a potential decline to key support levels at $100.34 and $85. The asset has already lost a crucial support level at $128, which previously catalyzed its rally to an all-time high of approximately $295. If selling pressure continues to prevail in the market, SOL could experience further downward movement towards these support levels.
Overall, the outlook for Solana in the near term remains bearish, with the potential for a continued decline in price given the combination of the upcoming token unlock, weak market sentiment, and lack of demand. Investors and traders in the crypto space should monitor these developments closely and consider the potential impact on Solana’s price movement in the coming days.
