Solana has struggled to recover from the recent price decline, and SOL remains capped below the $130 resistance. Altcoins have shown attempts at stabilization, but momentum remains fragile.
Unlike previous rallies driven by new inflows, the next move appears to be dependent on existing Solana holders rather than new entrants to the market.
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Some Solana Holders Show Resilience
On-chain data shows early signs of stabilization. Chaikin’s money flow has registered a sharp increase in recent days. Although this indicator remains below the zero line, the upward movement suggests that capital outflows are slowing.
This change is critical to Solana’s recovery prospects. A reduction in outflow often precedes a transition to inflow. If buying pressure exceeds selling pressure, SOL price may react quickly. Sustained improvement in CMF would signal a return of confidence to current holders.
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Macro indicators paint a more cautious picture. The number of new Solana addresses dropped sharply in recent sessions. New addresses decreased from 6.077 million to 5.39 million, an 11.3% decrease over 10 days.
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The decline in network participation suggests weak speculative interest. New investors appear to be hesitant due to limited short-term incentives. This lack of new demand places greater emphasis on existing holders to stabilize prices and support attempts at recovery.
Possibility of SOL price recovery
Solana is trading around $126 at the time of writing, still below the $130 resistance level. Price movements indicate a consolidation rather than a breakout. SOL’s immediate goal is to regain $130, which would indicate a short-term momentum change.
Reducing runoff increases the likelihood of rebound. If current holders maintain their accumulation and inflows emerge, buying pressure could push SOL towards $130. A sustained rally above this level will require consistent support rather than short-term speculative spikes.
Downside risks remain if sentiment worsens. If another selloff occurs, Solana could fall below the $123 support. A breakdown at this level could surface $118 as the next downside target. A loss of this support would invalidate the bullish outlook and further strengthen near-term weakness.
