Solana (SOL) drops below $160 on security and unlock fears
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Solana tumbles toward november lows after 47% correction
Solana (SOL/USD) fell 7.35% to $157.25, marking its lowest level since november 6 the token has declined 47% from its all-time high of $295.31 on january 19, wiping out post-election gains amid negative sentiment and structural weakness.
Security concerns linked to North Korea’s Lazarus Group weigh on SOL
The $1.4 billion bybit hack on feb. 21 was allegedly linked to North Korea’s Lazarus Group, a notorious hacking syndicate onchain investigator ZachXBT discovered that wallets involved in the hack were tied to Solana-based memecoin scams, particularly rug pulls on pump.fun Solana’s reputation has taken a hit as the ecosystem faces growing scrutiny over fraudulent activity.
SOL token unlock event raises fears of supply flood
The FTX estate is set to unlock 11.16 million SOL (~$1.79 billion) on march 1, sparking concerns over increased sell pressure uncertainty over how much of the unlocked SOL will be sold is leading to cautious trading and risk aversion preemptive selling ahead of the event is likely contributing to Solana’s recent underperformance.
Negative funding rates and declining open interest signal weak demand
Solana’s open interest (OI) in the futures market has dropped from $8.57 billion on jan. 17 to $5.11 billion on feb. 24, indicating that traders are exiting positions weekly funding rates turned negative (-0.48%), showing that shorts are paying longs to keep positions open, reflecting bearish market sentiment.
Head-and-shoulders breakdown hints at another 30% decline
Solana has entered the breakdown phase of a head-and-shoulders pattern, losing support at $177 if the pattern plays out, Solana could fall toward $110, marking an additional 30% decline from current levels reclaiming $177 as support could invalidate the bearish outlook and lead to a recovery toward $215.
Trading outlook
Solana remains under pressure, with key resistance at $177 a confirmed break below $150-$148 could accelerate the downtrend toward $125-$110 investors will be closely watching march’s token unlock event, as sell pressure from the FTX estate could dictate SOL’s near-term direction.
Solana (SOL/USD) fell 7.35% to $157.25, marking its lowest level since november 6 the token has declined 47% from its all-time high of $295.31 on january 19, wiping out post-election gains amid negative sentiment and structural weakness.
Security concerns linked to North Korea’s Lazarus Group weigh on SOL
The $1.4 billion bybit hack on feb. 21 was allegedly linked to North Korea’s Lazarus Group, a notorious hacking syndicate onchain investigator ZachXBT discovered that wallets involved in the hack were tied to Solana-based memecoin scams, particularly rug pulls on pump.fun Solana’s reputation has taken a hit as the ecosystem faces growing scrutiny over fraudulent activity.
SOL token unlock event raises fears of supply flood
The FTX estate is set to unlock 11.16 million SOL (~$1.79 billion) on march 1, sparking concerns over increased sell pressure uncertainty over how much of the unlocked SOL will be sold is leading to cautious trading and risk aversion preemptive selling ahead of the event is likely contributing to Solana’s recent underperformance.
Negative funding rates and declining open interest signal weak demand
Solana’s open interest (OI) in the futures market has dropped from $8.57 billion on jan. 17 to $5.11 billion on feb. 24, indicating that traders are exiting positions weekly funding rates turned negative (-0.48%), showing that shorts are paying longs to keep positions open, reflecting bearish market sentiment.
Head-and-shoulders breakdown hints at another 30% decline
Solana has entered the breakdown phase of a head-and-shoulders pattern, losing support at $177 if the pattern plays out, Solana could fall toward $110, marking an additional 30% decline from current levels reclaiming $177 as support could invalidate the bearish outlook and lead to a recovery toward $215.
Trading outlook
Solana remains under pressure, with key resistance at $177 a confirmed break below $150-$148 could accelerate the downtrend toward $125-$110 investors will be closely watching march’s token unlock event, as sell pressure from the FTX estate could dictate SOL’s near-term direction.