Is The Solana Bottom In? Experts Answer
In a new technical analysis shared via X, crypto analyst Scott Melker aka The Wolf Of All Streets (@scottmelker) highlighted a critical support-resistance setup for Solana (SOL), emphasizing what he views as a textbook b...
In a new technical analysis shared via X, crypto analyst Scott Melker aka The Wolf Of All Streets (@scottmelker) highlighted a critical support-resistance setup for Solana (SOL), emphasizing what he views as a textbook bounce off of a key technical level. “Picture perfect bounce off of $112 support. Double bottom would confirm with a break above $147, the swing high between the two bottoms. Don’t let anyone call it a double bottom until that happens. Regardless, nice bounce off of support with defined resistance to watch,” Melker stated.
The analyst’s chart shows SOL rebounding from near $112, reinforcing that zone as significant short-term support. For a bullish double-bottom pattern to validate, Melker points to a breakout above the downtrend line (currently around $130). If SOL breaks this resistance, $147 will be the critical level that would need to be breached. Until then, he advises caution about prematurely labeling the formation as a confirmed double bottom.
Solana Bottom In?Notably, these remarks come on the heels of unlocks. According to a post by on-chain intelligence firm Arkham on Thursday, “$200M OF SOL UNLOCKING TOMORROW. Tomorrow (4th April) marks the largest single-day unlock of staked SOL until 2028. These 4 accounts staked a total of $37.7M of SOL in April 2021, and are up 5.5x at current prices.” The scale of these unlocks has generated considerable discussion on social media.
Another trader, NooNe0x, took a more optimistic stance, remarking, “SOL unlocks. Looking at the bright side, today’s unlock was the last large block. Today alone is as much as 40% of everything that is still left. It is 78% done, May, June and only large-ish blocks left. Ripping the bandaid off.” In other words, with the bulk of significant unlocks possibly behind it, the supply overhang from locked tokens might be dissipating.
Historically, major token unlock events—whether for Solana or other projects—have often been anticipated well in advance by traders and investors. Markets “price in” that large holders sell their old tokens, sometimes driving prices lower ahead of the actual unlock. Once the unlock date arrives, if the anticipated sell-off does not materialize as severely as feared (or if much of the unlocked stake remains off the market), prices have tended to stabilize and often recover in the days or weeks that follow.
This pattern emerges because many holders, especially larger or early investors, may opt to restake or hold onto their tokens if they maintain a strong fundamental outlook. Meanwhile, short-term traders who had been betting on unlock-related volatility might close positions once the event passes. This “buy the rumor, sell the news” (or vice versa) dynamic can lead to price whipsaws around unlock periods, but no single outcome is guaranteed; much depends on how much actual selling pressure surfaces and broader market sentiment at the time.
Meanwhile, Awawat, a trader and angel investor at APG Capital, cautioned that Solana could be in a precarious position despite holding above $100. “SOL absolutely shrekt – broke 170 range low, bounced at 120 a few times – now holding above 100 but the ice is thin – last big unlock tomorrow – will bid sub-100 if given but this looks rough given the state of the trenches,” he wrote.
At press time, SOL traded at $115.
Original source
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