Solana’s price fluctuations have remained relatively flat in recent days as the wider crypto market experiences uncertainty.
Despite a robust start earlier this month, SOL has been struggling to keep its upward momentum. Investor sentiment seems split, with some holders cashing out profits while others prepare for a potential rebound.
Solana Investors Are Selling Off
In the last week, Solana investors have been more inclined to sell. On-chain data indicates that over $132 million worth of SOL has been transferred to exchanges during this timeframe. This increase signals intensified selling pressure as traders look to secure profits or exit amid the prevailing uncertainty.
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While the amount of SOL sold is relatively small, it does indicate signs of panic selling; some investors are liquidating positions during minor price upticks, reflecting a lack of faith in sustained growth. However, this selling pressure is insufficient to significantly hinder Solana’s price recovery, even though it has caused a slight dip.
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The short-term holder Net Unrealized Profit/Loss (STH NUPL) indicator is currently situated in the capitulation zone, indicating that most short-term holders are selling at a loss. Historically, such situations have marked the beginning of a rebound phase during generally positive market conditions. This pattern has been seen multiple times in Solana’s past cycles.
When investors cease selling at a loss and start waiting for profit opportunities, market pressure typically alleviates. This shift could initiate a transition toward accumulation, potentially resulting in a short-term rally.
Potential for SOL Price Recovery
Solana’s current price is $192, remaining just above a key support level at this mark. The altcoin recently experienced a dip after failing to establish a foothold above $200, but its resilience at this level is a positive development.
Given the existing on-chain dynamics, SOL could soon reverse its recent losses. A successful breakout above $200 and $205 might lead towards $213, indicating renewed bullish momentum.
However, if selling pressure continues to dominate and confidence remains low, Solana’s price could drop to $183. Such a decline would contradict the bullish outlook and exacerbate the short-term downtrend.
