### Solana (SOL) Faces Continued Selling Pressure Amid Market Challenges
Solana (SOL) has been under significant selling pressure since it hit an all-time high of $295 in January, and this week has seen its decline extend further. The broader market’s struggles, intensified by Bitcoin’s 11% drop in the last 24 hours, have contributed to this pullback. Additionally, recent trends such as the meme coin frenzy and various pump-and-dump schemes have further tarnished Solana’s reputation.
Currently, the most pressing issue appears to be the upcoming token unlock by FTX, which has sparked concerns about a potential major selloff as a substantial amount of SOL is set to enter the market. On Tuesday, crypto analyst Ali Martinez pointed out a significant shift among large holders, noting that “135 whales holding over 10,000 SOL have sold or redistributed their holdings in the past month.” This mass exit occurs just ahead of Solana’s largest-ever token unlock, scheduled for March 1. This event will release 11.2 million SOL, valued at nearly $2 billion, primarily from FTX’s bankruptcy estate. According to Messari data, over 97% of Solana tokens are already unlocked. In February 2025, 9 million SOL entered circulation, marking a peak ahead of March. Future unlocks in April and July are expected to be relatively minor, making the FTX unlock a crucial event to monitor.
Analysts at XBT Research have warned that at a price of $172 per SOL, the 11.2 million SOL unlock is valued at approximately $2.03 billion, which represents 2.4% of the circulating supply. They noted, “Past unlocks showed holding behavior, but selling pressure could push prices down in the short term.” Additionally, major venture capital firms like Galaxy Digital, Pantera Capital, and Figure, which hold billions in unrealized gains, are under speculation for potentially liquidating part of their holdings. Recently, market maker Wintermute withdrew $38.2 million worth of SOL from Binance, further heightening concerns about possible sell-offs ahead of the unlock.
The bearish sentiment is compounded by recent meme coin scandals that have further diminished confidence in the Solana network. The LIBRA token incident, which involved allegations of insider trading and fraudulent activities, has shaken investor trust. This uncertainty has already led to capital outflows, with Solana’s MEME index showing a monthly decline of around -6%, according to crypto analytics firm Glassnode. Meanwhile, Solana’s network activity has seen a significant drop, with active addresses plummeting 60% from an all-time high of 18.5 million in October to just 7.3 million today, as reported by Glassnode.
Despite the looming concerns that the upcoming unlock could trigger a selloff, some traders are viewing it as a potential buy-the-dip opportunity. Analyst Miles Deutscher shared with his 600,000 followers on X that “SOL sentiment is the worst it has been in over a year since first reclaiming the $100 level.” However, he also hinted at a possible turnaround, stating, “After being a top performer for so long, it’s finally having its capitulation moment. I think we’re getting close now…” At press time, the market remains watchful.
