Wintermute moves $38M SOL before $2B token release

Ahead of Solana's (CRYPTO:SOL) upcoming token unlock, Wintermute, a crypto market maker, withdrew $38.2 million worth of SOL from Binance.

The withdrawal occurred in the 24 hours leading up to 9:02 am UTC on February 24.

This action precedes Solana's scheduled March 1 unlock, which will release 11.2 million SOL tokens, valued at approximately $2 billion, into circulation.

This token unlock represents about 2.23% of Solana's total supply.

Concerns are rising that the unlock may increase selling pressure, especially since a large portion of the tokens were acquired at discounted prices during FTX auctions.

Galaxy Digital, Pantera Capital, and Figure, for example, purchased SOL at $64 per token.

Crypto analyst Artchick.eth pointed out that over the next three months, more than 15 million SOL, worth about $2.5 billion, will enter circulation.

Solana's price has already been under pressure, falling over 7.5% in the 24 hours before February 24, reaching a three-month low of $155.

The decline also reflects a broader downturn, with SOL dropping 35% over the past month.

Technical analysis indicates continued downside risk, with the Relative Strength Index (RSI) nearing oversold levels.

The market is showing bearish sentiment, with negative funding rates indicating that traders are shorting SOL in anticipation of price fluctuations.

Some analysts suggest that the unlock event has been partially priced in, with the token losing 30% of its value over the past month.

Key support levels to watch are around $126, while breaking above $225 is needed to reverse the downward trend.

The upcoming token unlock is a key event that will likely influence Solana's price and market direction.

While the long-term prospects of Solana remain promising, the short-term may bring volatility and selling pressure.

At the time of reporting, the Solana (SOL) price was $141.09.