"SOL Plunges to 3-Month Low Amid FTX Token Fears"

Solana (SOL), the sixth-largest cryptocurrency, has experienced a significant price drop, falling to $126, its lowest level since mid-October. This decline has sparked concerns among investors, particularly in light of the upcoming token releases from the FTX bankruptcy estate.

The current volatile crypto market has created severe panic among investors. At the time of writing, the price of SOL was $129.5, reflecting a 7.43% drop over the last 24 hours. Its value has fallen 55.87% since its all-time high of $294, raising concerns about its prospect. If this decline continues, SOL might drop below $120 in the upcoming days.

Over the last week, Solana dropped 27% in value. Many investors believed that $127 was the lowest mark of SOL, but in just 24 hours, it plummeted to $125.74. This sudden drop affected the general market sentiments and created panic among investors, causing them to predict a new lower low of $100.

The underlying cause behind this drop is the likely release of 11.2 million SOL tokens in March. These tokens are the property of the FTX bank cryptocurrency exchange. The fear is that the massive dump will swamp the market, which will lead to further losses. Earlier, 41 million SOL tokens were issued to companies like Galaxy Digital, Pantera Capital, and Figure to allow FTX to repay its creditors.

The situation worsened as SOL’s decentralized finance (DeFi) ecosystem activity declined. SOLs’ data shows the total value locked (TVL) dropped from $12 billion in mid-January to $6.8 billion as of 28 February 2025. This drop mirrors the decrease in token demand after Trump’s inauguration. Additionally, the Solana memecoin trading declined in the past weeks, reflecting the market’s vulnerability.

Market analysts are watching Solana’s technical data keenly, which currently are signaling more downside risks. The relative strength index (RSI) stands at 23.92, which implies that SOL is oversold. However, this is not always a promise of an immediate price reversal. Bollinger Bands also show extreme volatility, with selling pressure in recent trading sessions. If Solana cannot bounce