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Is It a Good Time to Buy Solana? Will the Token Unlock Harm the SOL Price in 2025?
The year-end is approaching, and the cryptocurrency market is experiencing a rollercoaster ride. Amidst this chaos, it’s essential for investors to identify opportunities that can help them make informed decisions. One such opportunity lies with Solana (SOL), a popular altcoin that has been gaining traction recently.
As we dive into the technical analysis of SOL, it becomes clear that the token is poised to continue its upward trajectory in 2025. With this in mind, we will also be discussing whether the impending token unlock could potentially harm the SOL price.
Currently, SOL is trading at a relatively low price compared to its all-time high. However, the token’s RSI (Relative Strength Index) has moved above the mid-line of 50, suggesting that it may have reached an oversold zone. This would indicate that there are minimal bearish forces left to hinder the price from further growth.
On the daily chart, SOL is seen forming an ascending triangle pattern. Typically, this formation can be a precursor to an uptrend and should not be ignored by investors. Additionally, the Stochastic Oscillator has also moved above the overbought zone of 80, indicating that we are more likely to see upward momentum continue.
Looking ahead to 2025, it is essential for SOL holders to remain cautious regarding the impending token unlock. The last time Solana’s token supply was unlocked was in August, and we saw a massive correction in the price. This could be due to the increased selling pressure as a result of the liquidity injection.
However, this time around, things might be different. Since then, SOL has become significantly more popular and its transaction volume has surged exponentially. Despite this, it is crucial that investors are prepared for potential volatility if the token unlock does indeed lead to an increase in supply.
The token’s technicals suggest a rise to the immediate resistance zone between $197 and $200.22 before reaching a significant hurdle at the 50-day MA ($205.13). If SOL can break this level, there is no stopping it from targeting the major resistance of the decisive symmetrical triangle close to $210.
In conclusion, we believe that it might be an excellent time for investors to enter into long positions on Solana (SOL) as its current price is still relatively low compared to its all-time high. While caution should always be exercised when dealing with altcoins, we do not see any clear signs of a bearish pullback in the near future.
As a result, it appears that the upcoming token unlock might have an insignificant impact on the overall market dynamics and SOL price.
Source: coinpedia.org
