Solana (SOL-USD) is under pressure from multiple fronts. Large investors are making aggressive bearish bets, expecting further price declines. A $2.07 billion token unlock on March 1 has traders bracing for increased selling pressure. At the same time, Solana’s once-thriving memecoin ecosystem is slowing down, and concerns over security risks tied to the $1.4 billion Bybit hack are weighing on sentiment. The combination of these factors has sent SOL tumbling 47% from its all-time high, and analysts warn that more downside could be on the horizon.
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Solana Whales Flood Deribit with Bearish Options
Big-money traders are taking no chances. Whales have been pouring into put options—derivatives that profit when prices drop—on Deribit, with block trades accounting for nearly 25% of total Solana options activity last week, according to Amberdata. Greg Magadini, director of derivatives at Amberdata, noted that “nearly 80% of the block-trade volume was concentrated in put contracts”, a far higher rate than Bitcoin or Ethereum during the same period.
Solana’s Price Drops ahead of Massive Token Unlock
The pessimism around Solana isn’t just speculation. The network is facing a major token unlock on March 1, when 11.2 million SOL tokens worth approximately $2.07 billion will be released into the market, according to Deribit’s Lin Chen. A large portion of these tokens belong to the FTX estate, raising concerns about potential sell pressure. Chen explained that such a large unlock represents 59% of SOL’s daily spot trading volume, making it a significant market event.
Memecoin Slowdown and Security Concerns Hurt Solana
Solana’s once-thriving memecoin ecosystem has cooled, and that’s not helping its price. Artemis data shows that daily transactions and decentralized exchange volumes on Solana have dropped significantly since the peak of the TRUMP token launch in January. Additionally, the network has been linked to security concerns following the $1.4 billion Bybit hack. On-chain investigator ZachXBT found that wallets tied to the Bybit hack were also involved in Solana-based memecoin scams, adding to the negative sentiment.
Solana Faces Potential 30% Price Drop
Technical indicators aren’t offering much comfort either. Solana has fallen 47% from its all-time high of $295.31 and is at risk of further downside. Analysts warn that its current head-and-shoulders (H&S) pattern could push SOL down to $110, over 30% lower from current prices, unless it reclaims key support levels.
With bearish bets rising, a looming token unlock, and fading interest in memecoins, Solana’s short-term outlook remains uncertain. At the time of writing, Solana is sitting at $158.92.
