Solana’s price drop from highs around $230 to approximately $195 between October 7 and 14 has reduced confidence among some of its significant holders.
On-chain data indicates that in the last week, SOL has experienced a notable decline in the number of perpetual futures positions maintained by its prominent investors, heightening the risk of additional downward pressure on the coin in the short term.
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SOL Sentiment Becomes Cautious as Major Holders Withdraw
According to Nansen, whales trading Solana perpetual futures have halved their net positions by 103% in the last week. This indicates that some of the largest market players are liquidating positions instead of increasing them.
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According to the data provider, these are substantial investors holding coins valued over $1 million. A decrease in their net positions signifies waning confidence and can exert pressure on the market, as their actions frequently influence smaller investors.
Additionally, the top 100 Solana addresses have diminished their perpetual futures exposure, with positions declining by 70.07% in the past week.
This reduction underscores a change in sentiment among major stakeholders, who seem to be mitigating risk after the coin’s volatile price fluctuations and last weekend’s extensive market liquidation event.
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These patterns indicate that large SOL holders and high-value traders are being cautious in light of diminishing bullish momentum in the cryptocurrency market.
SOL Sellers Increasing Momentum on Daily Chart
On the daily chart, SOL’s negative Balance of Power reinforces this bearish perspective. As of now, the momentum indicator shows a downtrend at -0.65.
The BoP indicator assesses the strength of buyers against sellers in the market, aiding in the identification of momentum changes. A positive value indicates buyer dominance over sellers, fostering price increases.
In contrast, negative BoP values suggest seller dominance, driving prices downward.
If SOL sellers gain further strength, they could trigger a dip below the $195 level towards $171.88.
Conversely, renewed buyer interest could stabilize the SOL market and lead to a rebound to $219.21.
