An Upcoming Solana Token Unlock

An upcoming Solana token unlock event has triggered a reaction from SOL whales, who are taking positions to protect themselves from potential losses. According to reports, several big Solana holders are placing bets on SOL put options in the options market, acting as insurance against a potential price slump.

Crypto options exchange Deribit reportedly saw a significant $32.39 million in SOL block trades last week. That’s nearly 25% of their entire options volume! Market watchers say these large block trades are a tell-tale sign of whale activity in the options market, meaning these major players are trading SOL options to either protect themselves or profit from a possible downturn in Solana’s price.

Put Options Dominate Whale Strategy for Solana

Meanwhile, data from Amberdata, a platform providing blockchain network insights, shows that whales funneled almost 80% of their SOL block trades into Put Options. To put this in perspective, Put Options only accounted for 40% of BTC trades and 37.5% of ETH trades during the same period.

Token Unlock Looms, Analysts Predict Selling Pressure

Solana slated its next token unlock for March 1, and analysts expect the event to impact SOL’s price. One such analyst, Lin Chen, Deribit’s Head of Business Development for Asia, expects the Solana token unlock to trigger significant selling pressure for SOL.

Massive Token Release Fuels Bearish Whale Bets

Solana plans to release 11.2 million SOL tokens into the market, which is 2.29% of the total supply and roughly 59% of SOL’s daily spot trading volume. Chen believes this anticipated flood of tokens hitting the market has prompted whales to snap up SOL Put Options, as a hedge against further price drops.

SOL Price Already Feeling the Pressure

As all this unfolds, SOL’s price has already started to slide, dropping 7% in early Monday trading. The cryptocurrency broke below notable resistance at $169.22 and traded for $158.47 at the time of writing. SOL could drop further unless the bulls intervene and support at $155.01 holds.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.