The Solana price has dived by 8% in the past 24 hours, dropping to $169 as the cryptocurrency market falls by 3% today.
SOL is now down by 16.5% in a week and by 38% in the past month, as traders offload the alt amid fears of the March 1 unlock, which will see FTX’s estate release $2.2 billion in the token.
Yet Solana’s fundamentals will prevent it from dropping much further below $160, with upcoming updates putting on course to make strong headway later in the year.
Solana Price Breaks Bearish Pattern – Is $161 the Next Stop?
SOL may be taking a beating today, but its indicators would suggest that it will have to rebound very soon, given how oversold things have become.
Its 30-period average (orange) has plunged to a new low in relation to the 200-period average (blue), while its current price has tumbled well below both indicators.
Source: TradingView
At the same time, SOL’s relative strength index (purple) has fallen under 30 on numerous occasions in the past few days, another sign that selling has become excessive.
We’ve also seen 24-hour trading volume more than treble since Sunday, as traders rush to sell ahead of the March 1 unlock.
The past week has also witnessed a few big SOL transfers, with two unknown wallets exchanging $108 million in Solana on Friday.
Based on this activity, and based on the fact that just over $2 billion in SOL will release in a couple of weeks, the Solana price may have to take a little more pain before it rights itself.
It could even drop to the price ($157) it had before November’s post-election rally, although it shouldn’t fall much further.
Obviously, the fear is that the released SOL will hit the market immediately, yet given that asset managers such as Galaxy Digital and Pantera Capital have bought the tokens in auctions, this shouldn’t be taken as a given.
And when combined with Solana’s still-strong fundamentals, the Solana price should recover in the weeks following March 1.
As such, it could return to $200 by the end of March, assuming it doesn’t sink below the all-important $150 resistance level.
New High-Potential Solana-Based Alts
For anyone disturbed by SOL’s dive today, there are newer alternatives that seem to have a much better chance of rallying hard in the coming weeks.
Some of these are presale coins, which can often surge when they list for the first time, particularly after having popular sales.
One interesting coin having a popular presale right now is Solaxy (SOLX), which has raised more than $22 million in its offering.
What sets Solaxy apart from the crowd is that it will be Solana’s first true layer-two network, helping users to avoid the delays and congestion that can still impact Solana even to this day.
It will provide very low fees and very high transaction speeds, while also enabling instant bridging between itself and Solana.
It could therefore gain plenty of traction in the long run, with the network aiming to become an important hub for meme tokens and DeFi, which rely on speed.
And SOLX is a bullish token to hold because it’s necessary to pay for Solaxy’s transaction fees, so it could experience big demand.
Investors can buy it early (and at a discount) by visiting the Solaxy website, where SOLX currently costs $0.001638.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 
