Solana is facing increased sales pressure as long-term holders (LTHS) increase their distribution, eroding confidence in Altcoin’s upcoming outlook.
The long surge in liquidation across the Sol Futures Market has further weakened emotions and discouraged buyers who usually hold Sol for more than three months. These trends draw challenging pictures for the short-term recovery of the coin.
Solana’s LTHS increases distribution
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Data from GlassNode shows that SOL’s vibrancy has steadily risen over the past few weeks. The metric climbed to a 30-day high on September 21, highlighting the increase in previous dormant token movement.
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The vibrancy tracking the ratio of destroyed coin days, along with the total number of coin days accumulated, provides insight into whether LTH maintains or uses coins.
Like SOL, this metric suggests that ascending, longer-term tokens are being moved or sold, leading to profits among long-term investors and reducing convictions.
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Additionally, negative measurements from Sol’s Hodler Net Position Change support this bearish outlook. For each GlassNode, this metric is consistently tilted downward, returning negative values since August 27th.
This metric tracks the net position of long-term holders over a specific period of time and measures whether investors are increasing or reducing their exposure. Positive readings indicate that more coins have been transferred to Hodler’s wallet.
Conversely, if it is negative, it indicates that long-term holders are distributing assets rather than accumulating.
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Sol’s sustained negative change in Hodler’s net position highlights that market-stabilizing investors are typically offloading their holdings, increasing the wider divestiture pressure.
Solana faces $200 calculations after record-breaking futures
It’s not overstated why confidence among long-term Solana holders has diminished. The bearish cloud hanging in the wider market has dragged Sol’s value less and plunged many bullish traders into sudden losses.
Yesterday, the long liquidation of Solana futures has skyrocketed since the start of the year, accounting for 97% of all positions wiped out in the coin derivatives market.
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Such liquidation usually reduces confidence among participants who are bet on the opposite momentum of the coin and can exacerbate their selling.
In this scenario, the price of Altcoin will again reach $200, and tends to be $195.55.
On the other hand, new demand entering the market can prevent this. Once buy-side pressure is achieved, Sol’s price could fall on the contrary, potentially surged to $248.50.
