Solana price movements have remained largely stagnant over the past few days as the broader crypto market exhibits uncertainty.
Despite a strong start to the month, SOL has struggled to maintain its upward momentum. Investor sentiment appears to be divided, with some holders taking profits while others are bracing for a possible recovery.
Solana investors sell heavily
Over the past week, Solana investors have turned to the sell side. On-chain data shows that over $132 million in SOL was transferred to exchanges during this period. The inflows reflect increased pressure on the sell side as traders seek to take profits or exit amid uncertainty.
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Although the SOL sold was relatively small, it clearly shows panic selling. Other companies have exited positions in the small rally, suggesting a lack of confidence in sustained price growth. However, even if it causes a slight decline in prices, this sell-off is not strong enough to prevent Solana prices from recovering.
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The short-term holders’ net unrealized gains and losses (STH NUPL) indicator is currently in the capitulation zone, indicating that most short-term holders are selling at a loss. Historically, when this happens when the market is generally doing well, it signals the beginning of a rebound. This pattern has been observed multiple times in previous cycles of Solana.
When investors stop selling at a loss and instead start waiting for profit-taking opportunities, market pressure tends to subside. This movement could trigger a transition to accumulation and lead to a short-term rally.
SOL price may rebound
Solana is currently priced at $192, just above the major support level at the same level. Although the altcoin has recently fallen after failing to gain a foothold above $200, its resilience at this level remains a positive sign.
Given the current on-chain dynamics, SOL could quickly recover its recent losses. A successful break above $200 and $205 could pave the way to $213 and indicate new bullish momentum.
However, if selling continues to dominate and confidence remains weak, Solana’s price could fall to $183. Such a decline would invalidate the bullish outlook and make the near-term downtrend even more severe.
