Solana made a sharp intraday recovery after recent losses weighed on prices earlier this week. SOL rebounded strongly as the value of the broader crypto market increased by nearly $200 billion.
Aggressive market buying prevented further losses, and Solana stabilized despite lingering market uncertainty, posting a 12% daily gain.
Solana LTH is not that bullish yet
On-chain data shows that buying momentum among long-term holders has slowed. HODLers’ net position change is decreasing, indicating less accumulation by investors, which typically supports prices during economic downturns. This change follows a sharp pullback in SOL over the past week, which appears to have weakened long-term confidence.
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A sustained recovery will depend on long-term holders resuming accumulation. If buying momentum remains weak, Solana may struggle to build sustainable upside. Decreasing support from this group limits demand absorption and increases the risk that short-term bull markets will weaken without broad participation from long-term investors.
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Momentum indicators suggest that selling pressure may be nearing exhaustion. The Money Flow Index is approaching the oversold threshold of 20.0. Movement into this zone typically indicates selling saturation, preceded by a period of price stabilization or short-term rebound.
Historically, Solana has only entered oversold territory three times in the past two and a half years. Each instance coincided with a notable price stabilization or reversal. If this indicator falls further, it could halt SOL’s decline and help attract fresh bullish buying interest from traders.
Chance of SOL price recovery remains high
Solana’s price has increased 12% in the past 24 hours and is trading around $88 at the time of writing. In early trading, SOL fell about 13% to an intraday low. Due to strong push buying, the price did not close at around $67, highlighting active demand at low levels.
Support from the broader market could push SOL above $90 in the near term. To recover, you need to get back $100 in support. Consolidation at this level would confirm improved momentum and pave the way for a rally towards $110 as confidence returns.
Downside risk remains if long-term holders continue to sell. Failure to recover $100 could limit the upside and keep SOL range-bound around $90. If the situation worsens, the price could retreat towards $78. Such a move would invalidate the bullish theory and extend Solana’s correction phase.
