Solana (SOL) validators released a total of 50.7 million SOL, equivalent to over $940 million, on November 10, when the last epoch finished, the second-largest number of tokens to be unlocked in any Solana timeframe.
A little less than four weeks have passed since Epoch 370 came to a close, and investors and traders alike are concerned about how the future price of SOL could be affected. On November 9, the price of SOL fell to a low of $12.62, representing a loss of 31% in the 24 hours leading up to the event.
Traders were concerned that the tokens scheduled to be removed from the stake account, which amounted to around 13% of the total supply of Solana, would cause the market to plummet even worse. Interestingly, however, on November 10, the price of Solana spiked to $18.27, its highest price in the last month.
Solana price analysis
Currently, Solana is trading at $14.03, up 0.07% in the last 24 hours and a further 2.22% across the previous seven days. The decline in Solana is part of a $100 billion market sell-off prompted by the FTX meltdown. SOL was trading as high as $37 in November before the crash and had traditionally had strong backing from FTX’s founder Sam Bankman-Fried and then ultimately was the target of severe selling activity.
Elsewhere the crypto community at CoinMarketCap predict SOL to trade at a median price of $16.12 by the end of December, +$2.1036 (+15.01%) from its current price. Interestingly, the average price prediction is significantly more bullish, with an average of $28.35 by December 31, 2022, according to the data retrieved by Finbold.
When asked whether he was bullish on Solana, crypto trading analyst, Altcoin Sherpa responded that over the long term, it’s good that over 10% could be released in SOL tokens.
“Depends on timeline: short term, no. dont know what’s going to happen in regards to any SOL they have to liquidate. Scary to think that 10% of the network could be getting sold/released. Longer term, it’s good for the solana ecosystem IMO.”
Analyzing the top 20 most discussed cryptocurrencies on Twitter in November 2022, Solana led the pack with 15.3% of mentions, according to IPO analytics on December 2, suggesting that there is still plenty of interest around the digital asset. Notably, SSolana’sprice skyrocketed 20% despite heavy short interest on November 23 and led top 100 crypto pack by gains the following day.
SOL technical analysis
Analyzing the Solana technical analysis (TA), the summary on the 1-day gauge suggests ‘neutral’ at 10 versus only 7 for ‘buy’ and 9 at ‘sell.’
Upon closer inspection of these indicators, moving averages (MA) are in the ‘sell’ zone with 9. However, oscillators are tilted to the ‘buy’ sentiment at 2, against ‘neutral’ at 9, and ‘sell’ at 0.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.