Solana (SOL) is set for a significant token unlock event between October 1st and 7th, 2024, where approximately 524,030 SOL tokens—valued at around $81.56 million—will be released into circulation. This event has garnered considerable attention from the crypto community, as token unlocks often raise concerns about potential price declines due to increased selling pressure.
While this unlock represents only 0.11% of Solana’s total circulating supply, market analysts are closely watching for signs of volatility in SOL’s price. Historically, token unlocks can lead to bearish outcomes as an influx of tokens in the market typically results in a drop in demand.
Current Market Sentiment
Despite the upcoming token unlock, Solana’s Total Value Locked (TVL) has shown positive growth, increasing by 2.75% in the last 24 hours, indicating strong bullish sentiment among traders. Data from DeFiLlama revealed that Solana’s TVL stood at $5.506 billion at the time of writing, reflecting rising interest in the platform.
In addition, technical analysis from AMBCrypto shows that SOL remains in an uptrend, currently trading above the 200 Exponential Moving Average (EMA) on a daily timeframe. This indicator suggests that Solana is still in a bullish phase, with a potential to reach a resistance level of $165.
Should SOL break past this resistance and close a daily candle above $170, the token could see a 15% rally in the near future.
Bullish On-Chain Metrics
On-chain metrics support this positive outlook for Solana. Coinglass data reveals that SOL’s Long/Short Ratio stands at 1.019, indicating a bullish market sentiment. Moreover, Futures Open Interest for SOL has risen by 2.2% over the past 24 hours, signaling that traders are actively building long positions.
At the time of writing, SOL is trading near $157, following a 0.25% price increase in the last 24 hours. Additionally, its trading volume surged by 5.6%, showing higher participation from traders as market momentum shifts.
While the upcoming token unlock may introduce short-term volatility, Solana’s strong technical indicators and bullish on-chain metrics suggest that SOL could maintain upward momentum, with traders eyeing potential gains in the days ahead.