Will Solana Price Crash Below $100 Amid FTX’s $430M Unlock?

Since the beginning of the year, Solana (SOL) has been on a turbulent price ride. At first, it rose to a new ATH but crashed 53% amid a broader market correction and is struggling to recover. Although yesterday marked a significant recovery, the trend changed again, leading to another step down and more risk. With the FTX/ Alameda unstacking millions of SOL, the token is one step closer to a further crash. Will it drop below $100? Let’s discuss this.

Solana Price Crash: What’s Happening Today?

Today marks another turbulent day, and the entire crypto market is witnessing a crash, including the Solana price. It currently trades at $128.14 after a 19% drop in the last 24 hours. Its market capitalization and trading volume are $70.16B after the 19% drop and $9.56B after the 24% drop.

Interestingly, this drop is because the tariffs on Mexico and Canada go into effect. However, the most alarming thing is that this drop came after an impressive SOL price rally fueled by Donald Trump’s U.S. Strategic Crypto Reserve announcement.

At a time when investors anticipated a further uptrend, possibly as high as $200, the SOL price crashed, with the FTX and Alameda unstacking 3.03M SOL, equivalent to $431.3M.

FTX Unstake Event and Its Impact on SOL

As the crypto exchange begins redistributing the funds of FTX crash-affected investors, the market is witnessing millions of token unlocks, which are affecting their price. The firm recently unstaked 3.03M SOL ($431.3M) and transferred them to multiple crypto wallets.

24,799 SOL ($3.38M) has already been deposited to the Binance exchange, liquidating the asset. More importantly, many similar unlocks will come in April and the month after that, injecting fear into the market.

This is because large token unlocks often influence investors’ sentiments and cause price fluctuations. As the crypto market is already under pressure, investors wonder if Solana could crash below $100.

Why Wouldn’t Solana Price Crash Below $100?

The SOL token’s performance today shows high signs of volatility, and factors like investor sentiments, a drop in network performance, token unlocks, and broader market conditions are to blame. However, considering SOL’s rally yesterday and market sentiments, the Solana price may not crash to $100 despite the odds.

This altcoin grew to $177.88 yesterday and witnessed high trading volume and open interest, showcasing high investor interest. This explains the token’s potential for recovery even in adverse market conditions.

Although the SOL is on the brink of massive liquidation, a $100 crash is unlikely. According to the Coinglass data, $300M will liquidate if the SOL price crashes to $127. This might initially trigger a drop to $120, but a rebound may occur, making a dip below $100 unlikely.

Lastly, the Bitcoin price recovery in March could prevent this altcoin from further falling. The historical data reveals that BTC is bullish this month from the last 4 years, and the same might also happen this year, assisting the altcoins in recovery.

Conclusion: A Steep Correction, but No Collapse

Despite the ups and downs, Solana’s status in the crypto market is prominent. Although the FTX’s $431.3M unlock puts significant downtrend pressure on the price, the current analysis sees support at $120.

Hence, the SOL price crash to $100 is unlikely, but due to liquidation data,  it may dip towards $120. Investors must consider the liquidation level, whale data, and Bitcoin’s price movement to better comprehend Solana price predictions. 

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