Solana (Sol) has skyrocketed over 19% over the past week, raising its price to $230. The larry comes when Altcoin tries to recover from recent losses.
Despite this strong push, holders appear to be unconvinced by its sustainability.
Solana investors are bearish
Hodler Net Position Change data shows that long-term holders (LTHS) are selling SOL very well. Their activities are seven months high, reflecting a rapid increase in profit bookings. This trend indicates that many LTH do not believe that the gatherings are retained and are leaving.
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The mid-September dip seemed to scare investors, leading to this lack of belief. Such offensive sales undermines Solana’s confidence in the current rally. If profits continue, it could put downward pressure on Sol’s price.
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Beyond sales activities, network growth shows weakness. The number of new addresses on the Solana blockchain has dropped to a six-month low. This decline indicates that new participants are entering the market, suggesting limited incentives for new investments in assets.
The lack of new capital inflows is a concern for Solana’s long-term growth. Without new buyers, it will become increasingly difficult to maintain the meeting. The decline in adoption metrics reflects defeat.
Sol Price is gathering
At the time of writing, Solana is trading for $230 just under $232 resistance. The weekly rise of 19% attracted attention to Altcoin. However, overcoming this resistance is important for the continued rally.
If Solana flips $232 to the support floor, the token could push higher. Securing this level will pave the way for the next $242. This will strengthen bullish momentum and strengthen investor trust into a stronger uptrend.
However, if the bear signal is still in place, Solana risks returning to $221, or even $214. A fall to these levels would negate bullish papers and wipe out recent chunks of profit.
