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Why is Solana (SOL) Price Falling Today?

Published by
Chandan Gupta

Amid market uncertainty, Solana (SOL), the world’s fifth-largest cryptocurrency by market cap, appears bearish and is poised to continue its decline in the coming days. With this notable drop, SOL has experienced a significant 37% loss in the past 30 days.

Reason Behind Solana (SOL) Price Drop

However, the primary reason for the price drop appears to be the ongoing bearish market sentiment and the upcoming release of billions worth of SOL onto exchanges next month.

According to the latest report, the crypto market is set to witness an unlock of 11.2 million SOL tokens worth $1.7 billion on March 1, 2025. Additionally, smaller unlocks will follow on April 1 and May 1, adding $13.75 million to the supply.

This substantial token unlock on March 1 has already begun impacting Solana’s price, which may explain February’s 37% decline.

Current Price Momentum

SOL is currently trading near $157.90 and has dropped over 7% in the past 24 hours. However, during the same period, its trading volume surged by 157%, indicating heightened participation from traders and investors amid bearish market sentiment.

Solana (SOL) Technical Analysis and Upcoming Levels

According to expert technical analysis, SOL’s price appears to be losing its crucial support at $155. Based on recent price action and historical patterns, if SOL successfully breaches this key support and closes a daily candle below the $155 mark, we could see a price drop of over 22%, bringing it down to the $120 level.

Currently, SOL is trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, indicating that the asset is in a downtrend.

$77 Million Worth of SOL Outflow

Despite the bearish price action and market sentiment driven by the upcoming token unlocks worth billions, whales and long-term holders appear to be accumulating SOL, according to on-chain analytics firm Coinglass. Data from spot inflow/outflow reveals that exchanges have seen an outflow of over $77 million worth of SOL in the past 24 hours.

This significant outflow from exchanges suggests potential accumulation, which could create buying pressure.

Chandan Gupta

Chandan Gupta is a crypto analyst and news writer at CoinPedia. He specializes in market analysis using on-chain metrics and industry insights to forecast market trends. With over four years of trading experience, Chandan simplifies complex concepts in technical and on-chain analysis, making them easy to understand. At CoinPedia, he leverages his expertise to identify and present emerging opportunities in the cryptocurrency space

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