Solana Faces $200M Unlock, Traders Eye $130 Resistance
1min read Crypto analyst Scott Melker, known as The Wolf Of All Streets, shared a technical analysis on the social media platform X, highlighting a critical support-resistance setup for Solana (SOL). Melker noted a textbook bounce off of a key technical level at $112, emphasizing that this zone serves as significant short-term support. For a bullish double-bottom pattern to validate, he pointed to a breakout above the downtrend line, currently around $130. If sol breaks this resistance, $147 will be the critical level that would need to be breached. Until then, he advises caution about prematurely labeling the formation as a confirmed double bottom.
These remarks come on the heels of significant unlocks. According to a post by an on-chain intelligence firm, $200 million of SOL is set to unlock, marking the largest single-day unlock of staked SOL until 2028. These four accounts staked a total of $37.7 million of SOL in April 2021, and are up 5.5x at current prices. The scale of these unlocks has generated considerable discussion on social media.
Another trader, NooNe0x, took a more optimistic stance, remarking that today’s unlock was the last large block, representing 40% of everything that is still left. With the bulk of significant unlocks possibly behind it, the supply overhang from locked tokens might be dissipating. Historically, major token unlock events have often been anticipated well in advance by traders and investors. Markets “price in” that large holders sell their old tokens, sometimes driving prices lower ahead of the actual unlock. Once the unlock date arrives, if the anticipated sell-off does not materialize as severely as feared, prices have tended to stabilize and often recover in the days or weeks that follow.
This pattern emerges because many holders, especially larger or early investors, may opt to restake or hold onto their tokens if they maintain a strong fundamental outlook. Meanwhile, short-term traders who had been betting on unlock-related volatility might close positions once the event passes. This “buy the rumor, sell the news” dynamic can lead to price whipsaws around unlock periods, but no single outcome is guaranteed; much depends on how much actual selling pressure surfaces and broader market sentiment at the time.
Meanwhile, Awawat, a trader and angel investor, cautioned that Solana could be in a precarious position despite holding above $100. He wrote that SOL had broken the 170 range low, bounced at 120 a few times, and was now holding above 100, but the ice is thin. The last big unlock was expected to occur the next day, which could potentially drive the price below $100 if given the chance. At press time, SOL traded at $115.
