Solana (SOL) Price Surges 24% Over the Weekend, Only to Plummet 15.13% in the Last 24 Hours

Solana's price surged 24% over the weekend, only to plummet 15.13% in the last 24 hours, and is currently trading around $137.09.

Solana (SOL) price has surged 24% over the weekend, only to plummet 15.13% in the last 24 hours and is now trading around $137.09.

The altcoin has been extremely volatile, and a major reason for this is the recent unstaking of 3.03 million SOL (~$431.3 million) by FTX/Alameda. These tokens have been sent across multiple wallets, raising questions about a potential sell-off.

Large SOL Transfers Spark Sell-Off Fears

Blockchain analysis platform Lookonchain highlighted multiple large transfers quickly, with some transactions going over 100,000 SOL.

According to the platform, the liquidity in the market increases as these large unlocks usually push prices down. If these funds are moved to exchanges, it could mean a sell-off, leading to further price declines for SOL.

However, it’s worth noting that due to FTX’s bankruptcy proceedings, some of these funds may be liquidated to compensate creditors.

CME To Launch SOL Futures Contracts

CME Group has announced the launch of Solana futures, set to go live on March 17, pending regulatory approval. The introduction of both micro-sized (25 SOL) and standard (500 SOL) futures contracts will allow institutional investors to invest in Solana in a regulated way.

Despite this CME launch event, prominent analyst CryptoELITES offered a bullish perspective. He added that Solana has finally broken its long-term 2021 downtrend. The chart shows a classic cup-and-handle formation, suggesting a potential breakout if SOL stays above the trendline. The analyst’s long-term price targets are $450, $678, and $1,099. The third target is possible if Solana enters a parabolic rally similar to 2021.

Solana Technical Analysis

Looking at Solana (SOL) Price Analysis, the Relative Strength Index (RSI) is currently at 37.85, getting close to oversold conditions, but not quite at the extreme levels seen during previous bottoms. A further dip below 30 would indicate a stronger buy signal, as seen in the daily chart below.

Also, the lower Bollinger Band is at 122.66 and SOL has been trending towards it. If price breaks below this level, further downside towards $120-$110 could be expected. The mid-BB at 164.28 represents a major resistance level for any relief rally.

Immediate support is around $122-$125, while resistance is located near $164-$180. A close below $120 could confirm a deeper correction.