Solana’s price performance has been weighed down by the broader market’s sluggish momentum over the past week. With trading sentiment leaning cautious, SOL has shed 10% of its value in the last seven days.
However, there is a catch. Long-term holders (LTHs) view this correction as a fresh buying opportunity, quietly increasing their exposure to the altcoin. How will this impact SOL’s performance in the near term?
Solana Holders Accumulate Despite Price Weakness
Glassnode’s data has shown a steady decline in SOL’s Liveliness since August 16. It started dropping after a peak of 0.7656, confirming the waning selloffs among investors who have held SOL for more than 155 days.
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The Liveliness metric tracks the movement of long-held/dormant tokens by calculating the ratio of coin days destroyed to the total coin days accumulated. When it trends upward, more dormant tokens are being moved, signaling profit-taking by long-term holders.
Converesly, as with SOL, when an asset’s Liveliness falls, its LTHs are moving their assets off exchanges and choosing to hold.
This suggests that despite SOL’s recent price performance, its LTHs remain confident of its mid- to long-term prospects. If the accumulation trend continues, it could trigger a rebound in the near term.
Moreover, readings from SOL’s Hodler Net Position Change confirm the reduced selloffs from these key holders. Per Glassnode, this metric, which measures the 30-day change in the supply held by LTHs, rose by 64% between August 16 and 18.
When this metric rises like this, it indicates that LTHs are accumulating more coins than selling them. This means more SOL coins are being moved into long-term storage, despite the asset’s recent price decline.
$200 Solana Back in Sight, If Buyers Can Overcome Fading Inflows
If the accumulation trend continues, SOL could see a swift rebound and attempt to breach the resistance at $195.55. Once this happens, SOL could regain the $200 mark and rally toward the February high of $219.21.
However, risks remain. SOL’s Chaikin Money Flow (CMF), which measures capital inflows, is trending lower, implying that liquidity is drying up. Without renewed inflows, any rebound led by LTHs could struggle to gain sustained momentum.
In this case, its price could break below $171.81.
The post Solana Falls, But Long-Term Holder Accumulation Puts $200 Back on the Table appeared first on BeInCrypto.
