Solana (SOL) Drops Below $160, Its Lowest Point Since November 2024

CoinGlass data shows $26 million in liquidations in 24 hours, adding to last week's $110 million. The looming $2 billion SOL unlock from the FTX

Solana (SOL) slipped below the $160 support, hitting its lowest point since November 2024, amid reports of Binance selling large amounts of SOL through market maker Wintermute.

The crypto behemoth had been offloading massive positions of SOL in the last four hours, as seen in Wintermute’s gargantuan ETH and SOL holdings.

Moreover, the looming $2 billion SOL unlock from the FTX bankruptcy estate is adding to fears of a deeper crash, with some analysts predicting a drop to $100.

).

Indeed, the $2 billion worth of SOL set to hit the market next week is expected to dramatically increase supply, potentially overwhelming demand.

Some investors believe that this sudden liquidity influx could send Solana’s price spiraling toward the $100 level, especially with weak buying pressure in recent days.

This fear is being heightened by the fact that short positions on Solana are increasing, as evidenced by the OI-Weighted Funding Rate at -0.0023%.

Furthermore, the fear of liquidation cascades is also significant, as large liquidations between $120 and $160 could accelerate SOL’s decline.

As bearish sentiment grips the market, PumpFun has introduced an Automated Market Maker (AMM) liquidity pool designed to boost Solana’s network activity and meme coin trading volume.

The initiative aims to increase on-chain demand for SOL, potentially offsetting some of the selling pressure caused by the FTX unlock and Binance’s market activity.

The AMM will enable decentralized trading on Solana without relying on external DEXs like Raydium, further increasing transaction volume and utility for SOL.

However, it remains to be seen whether this innovation will be enough to counteract the massive supply shock heading toward the market.

Traders are watching closely to see if this new liquidity initiative can spark renewed interest in Solana.

If PumpFun’s AMM successfully attracts more users and liquidity, it could help stabilize SOL’s price, at least in the short term.

But with billions of dollars worth of tokens set to flood the market, the downside risks remain high.