Between the 1st and the 7th of October, nearly 524K SOL, worth $81 million, will be unlocked.
- Despite substantial token unlocks, Solana’s TVL has increased by 2.75%. SOL’s Long/Short Ratio was 1.019, indicating bullish market sentiment among traders.
Solana’s [SOL] upcoming token unlock has garnered significant attention from crypto enthusiasts due to fears of a potential price decline.
Solana’s token unlock
Recently, the token unlocks dashboard shared data showing that 524,030 SOL, worth $81.56 million, are set to be unlocked and released into the circulating supply between the 1st and the 7th of October.
However, this unlock represents just 0.11% of Solana’s total circulating supply.
Source: Token Unlocks
Following this report, there is a strong possibility that SOL could experience a selling pressure and price decline in the coming days.
In general, a token unlock is often considered a bearish sign, as the increase in available supply in the market can lead to selling pressure.
Current market sentiment
Solana’s Total Value Locked (TVL) has increased by 2.75% over the last 24 hours, indicating a positive sentiment among traders. According to data from DeFiLlama, Solana’s TVL was $5.506 billion at press time.
According to AMBCrypto’s technical analysis, SOL was in an uptrend as it was trading above the 200 Exponential Moving Average (EMA) on a daily time frame.
The 200 EMA is a technical indicator that is used to determine whether an asset is in an uptrend or downtrend.
Source: TradingView
Based on recent performance, there is a high possibility that SOL could initially reach the resistance level of $165.
If SOL breaches this resistance level and closes a daily candle above the $170 level, there is a strong possibility that the token could rally by another 15% in the coming days.
Bullish on-chain metrics
This positive outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, SOL’s Long/Short Ratio was 1.019 at press time, indicating a bullish market sentiment.
Additionally, its Futures Open Interest increased by 2.2% in the past 24 hours and continued to rise, suggesting that traders were potentially building long positions.
Source: Coinglass
At press time, SOL was trading near $157 after a price surge of 0.25% in the last 24 hours.
During the same period, its trading volume increased by 5.6%, indicating higher participation from traders and investors amid ongoing market reversal.
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