Solana (SOL) Whales Bet on Price Slump as Token Unlock Looms

An upcoming Solana token unlock event has triggered a reaction from SOL whales, who are taking positions to protect themselves from potential losses.

Solana whale activity has shifted towards put options in the options market, a strategy to protect against potential losses in case of a price downturn.

Crypto options exchange Deribit saw a massive $32.39 million in SOL block trades last week, accounting for almost 25% of their total options volume. These large block trades are typically indicative of whale activity in the options market.

Solana whales are placing bets on sol put options

Solana whales are using put options as a form of insurance against potential losses in case of a price downturn. Put options give the holder the right, but not the obligation, to sell an asset at a specified price within a set timeframe.

Data from Amberdata, a platform that provides blockchain network insights, shows that whales funneled almost 80% of their SOL block trades into put options.

In comparison, put options accounted for only 40% of BTC trades and 37.5% of ETH trades during the same period, highlighting the strong preference for downside protection among Solana whales.

The next sol token unlock is slated for march 1

Solana is preparing for its next token unlock event, scheduled for March 1. This event will see a significant amount of sol tokens being released into the market.

According to Deribit’s Head of Business Development for Asia, Lin Chen, the sol token unlock is expected to exert a strong downward pressure on sol price.

Solana plans to release 11.2 million sol tokens into the market, which equates to 2.29% of the total sol supply and roughly 59% of sol’s daily spot trading volume.

This substantial token release is likely to drive whales to snap up sol put options as a way to hedge against further price drops.

Solana price feels the heat with 7% early monday drop

Solana price is already feeling the heat as sol begins the week with a 7% early Monday morning drop.

The cryptocurrency slid past a key resistance at $169.22 and trades at $158.47 at the time of writing. Sol price could drop further unless the bulls put up a fight at the support of $155.01.

The article presents factual information and does not offer any financial advice or recommendations. It is essential to conduct thorough research and due diligence before making any investment decision.