A significant wave of Solana (SOL) has hit centralized exchanges following the largest scheduled unlock of staked tokens until 2028, raising concerns about potential short-term selling pressure.
On April 4, blockchain analytics platform Onchain Lens reported that 425,266 SOL, valued at approximately $49.78 million, was unstaked. According to Arkham Intelligence, this unlock represents the largest of its kind until 2028. Soon after the unstaking event, 284,147 SOL (worth $33.27 million) was transferred to major centralized exchanges including Binance, Coinbase, and Kraken.
The wallets involved had originally staked their holdings back in April 2021, when Solana traded at significantly lower prices. At current valuations, their investment has grown 5.5x, leading many analysts to speculate that profit-taking could be imminent.
Short-Term Price Impact
The unlock and subsequent transfer coincide with a weak performance in SOL’s price. Over the past week, Solana has declined 7%, briefly touching $112.24, a key 12-month support level. Currently, the asset is trading near $118.55, as it attempts to rebound.
From a technical standpoint, SOL is testing the $114.34 support while facing resistance at $128.79. The next critical resistance level stands at $143.25. Indicators like the Relative Strength Index (RSI) at 43.6 suggest that SOL remains in the neutral-to-oversold territory, offering room for potential upside if buying pressure returns. Meanwhile, Bollinger Bands signal a possible recovery as the price hovers near the lower band.
Long-Term Fundamentals Remain Strong
Despite the current volatility, Solana’s network fundamentals remain robust. Since November 2024, the total value locked (TVL) on Solana has nearly doubled, now sitting above 53 million SOL. Additionally, stablecoin activity has surged, jumping from $5 billion in January to $12.6 billion in March, based on DefiLlama data.
However, decentralized finance (DeFi) usage has taken a hit. The DEX volume dropped significantly from $252 billion in January to $52 billion in March, reflecting broader market uncertainties.
The recent $33.27M deposit of unstaked Solana into exchanges could hint at short-term selling activity. However, with solid on-chain fundamentals and a bullish technical structure building up, the long-term outlook for Solana remains promising—provided it holds critical support levels and overcomes near-term resistance.
