Despite the negative outlook, the price of Solana is likely to reclaim new highs once FTX sell pressure clears.
By Godfrey Benjamin
Edited by Julia Sakovich
Updated
3 mins read
Solana SOL $137.4 24h volatility: 0.4% Market cap: $70.27 B Vol. 24h: $3.12 B has fallen sharply, dropping more than 7% in 24 hours to reach $158.70, its lowest price this year. Per market data, the last time SOL went below $160 was on October 20, 2024, when it closed at $159.64. Despite brief attempts at recovery, the token remains stuck around the $159 price range. It is still unable to reclaim the crucial $160 support level.
Solana’s price has been dropping for a while. It has fallen nearly 13% in the past week and dropped by 35% in the last month.
Solana’s market cap is pegged at $78 billion, and its fully diluted value came in at $95 billion. This metric shows that the digital asset has lost significant value in a short span. Likewise, onchain data shows that the Solana decentralized exchange (DEX) activity has slowed down.
According to DeFiLlama data, Solana’s weekly DEX volume has dropped 36.7% to $16.6 billion. Its daily DEX volume is now at $1.5 billion, showing a big decrease in trading.
The main reason for Solana’s price drop is investors’ worries about the FTX derivatives exchange unlocking event on March 1. Reportedly, the defunct trading platform is set to release 11.2 million SOL worth $1.77 billion into the market.
With more tokens available, the selling pressure could push Solana’s price even lower. While Solana has lost about $10 billion in market cap and fully diluted volume already, many fear that the FTX unlock event could trigger the biggest price drop recorded thus far this year.
Meanwhile, Coinspeaker has reported bullish and bearish predictions for Solana price in 2025 despite the headwinds ahead. As earlier highlighted, VanEck forecasted that Solana could reach $520 by the end of this year.
Other positive but less optimistic predictions suggest a more conservative outlook. Analysts generally expect Solana’s price to range between $280 and $340 by 2025
The investment firm cited factors such as memecoin growth and increased institutional adoption as the basis for its forecast. Not all projections are positive for the digital currency. Some analysts warned that Solana’s price could drop to $100 soon. This might happen because of negative market sentiment surrounding memecoin abuse on the platform.
Meanwhile, the derivatives market shows that traders are generally cautious. On-chain data shows that SOL block trades on Deribit made up 25% of all Solana options last week, totaling $32.39 million.
This marked the second-largest SOL block trade volume, with 80% considered put options. For context, this is used by big investors to limit losses without triggering price crashes. On the bright side, some see the drop as a buying opportunity.
If Solana stays below $160 too long, selling pressure could grow. If buyers step in, the price may recover. Either way, all eyes are on Solana as it faces one of its biggest rebound tests of the year.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
