Solana (SOL) Nosedives 9% as Pre-Unlock Selling Pressure Mounts

Solana hit a major slump as it sunk to its lowest price since mid-October. At press time, the token is trading below the $153 margin.

Solana (SOL) price crashed to its lowest level since mid-October as it sunk below the $153 mark on Monday. The token faced bearish pressure with a 9% decline in the last 24 hours and a total decrease of 25% over the past 14 days, according to data from Coingecko.

This price drop comes amid several issues faced by the currency. Firstly, Solana’s connection to the Libra scandal put even the President of Argentina, Javier Milei, in hot water.

Secondly, the dwindling popularity of meme coins is another factor affecting Solana. These coins played a role in boosting the Solana network. Hence, the decreasing valuation of meme coins has impacted Solana to a great extent.

The Libra token that was built on the Solana blockchain lost around 90% of its value in just a matter of hours. This crash quickly sparked rumors of a scam. Things escalated to the point where there were open calls for impeaching President Milei because he had personally promoted Libra on a social media platform.

SOL Technical Analysis

Technical analysis of the SOL token showed the token undergoing bearish momentum. The token breached a crucial support level at $158 after a short period of consolidation.

Consequently, the Gaussian channel is indicating bearish momentum as the price fell heavily below the mentioned channel. This shows that the token needs to recover up to a major level to turn the sinking ship into a bullish trend.

In other news, Binance, one of the largest crypto exchanges, witnessed investors dumping SOL tokens heavily. This selling pressure comes at a time when around $2 billion of SOL tokens is set to be unlocked. This could potentially flood the market and decrease the token’s price further.

Hence, in light of these events, a top liquidity provider has reportedly pulled around $38 million worth of SOL tokens from Binance. Some speculate that the organization is preparing to sell these tokens at a higher price point. This has left investors puzzled as they await any price action.