The crypto market has shown a slight recovery. The overall market cap increased by 0.30% to $3.18 trillion. The 24-hour trading volume rose by 6% to $102 billion. However, the market sentiment remains fearful, with the fear index dropping to 37.
Solana (SOL) has been facing challenges recently. Its price fell from an all-time high of $295 to around $160. After a market correction in late January, SOL dropped below $200. It managed to recover above $200 and stayed there until mid-February.
A significant event is approaching. On March 1st, 11.2 million SOL tokens worth about $2 billion will be unlocked. This has contributed to Solana’s downward trend, causing the price to decline to $160.
Currently, SOL is trading at $175, showing a slight increase of 1.24% in the last 24 hours. However, it has dropped 11% weekly and 32% monthly. The market cap for SOL is now $84.86 billion, while trading volume has decreased to $5.12 billion.
In the past two days, Solana’s price has fallen sharply. The upcoming $2.5 billion token unlock in March has heightened bearish sentiment. The price recently hit $166. Analysts point out that the first major support level is at $155. If this fails, the next support level is around $133.
Despite these challenges, long-term projections for SOL remain positive. Technical indicators suggest that buying near key support levels could be a good strategy. Resistance levels at $204 and $288 may serve as recovery points if buying pressure increases.
There are signs of a potential bullish reversal. The 4-hour chart shows SOL forming a bullish pennant structure. The Relative Strength Index (RSI) is rising from the oversold area, indicating possible growth.
