Surge in Token Unlocks

According to Tokenomist, the cryptocurrency market will see a significant surge in token unlocks from March 17 to March 24, releasing assets valued at $486 million. The most notable token is Solana, expected to unlock around $59 million. While token unlocks can increase selling pressure, historical evidence suggests that Solana’s market impact may be minimal.

Other Notable Unlocks

In addition to Solana, several other assets have planned one-time and linear unlocks:

• ZKJ: $31.83 million (cliff unlock)
• QAI: $41.64 million (cliff unlock)
• FTN: $79.8 million (cliff unlock)
• WLD: $31.82 million (linear unlock)
• TIA: $23.80 million (linear unlock)
• DOGE: $16.60 million (linear unlock)

Although these numbers appear significant, many unlocks are already factored into market expectations.

Solana’s Current Market Situation

Despite the $59 million unlock, Solana is struggling within the broader market. Its price performance shows a downward trend, attempting to overcome resistance around the $140-$150 range. A decisive breakout is hindered by the 200-day moving average, a key resistance level.

Impact of Token Unlocks

While substantial token unlocks can cause short-term volatility, they do not invariably lead to price drops, as the market often absorbs much selling pressure, especially with constant demand. However, the prevailing bearish trend for Solana suggests that even minor increases in supply could lead to further declines.

Historically, Solana has managed token unlocks without significant losses due to its high liquidity. However, in the current weak market structure, the unlock may reinforce existing pessimism. If Solana fails to reclaim the $150 level, it could continue to decline toward $120 or lower.