Solana has struggled to get better after a recent price decline, with SOL remaining below the $130 resistance level. The altcoin has shown attempts to stabilize, however the momentum stays fragile.
Unlike previous rallies that were driven by latest inflows, the following move appears to be more depending on existing Solana holders than latest market entrants.
Some Solana holders are showing resilience
On-chain data shows early signs of stabilization. Chaikin money flow has seen a pointy increase in recent days. Although the indicator stays below the zero line, the upward movement suggests that capital outflows are slowing.
This shift is crucial to Solana’s recovery prospects. Falling outflows often precede a transition to inflows. Once buying pressure outweighs selling pressure, SOL price can react quickly. A sustained improvement within the CMF can be an indication of a return of confidence amongst current holders.
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Solana CMF. Source: TradingView
Macro indicators paint a more cautious picture. The number of recent Solana addresses has dropped sharply in recent sessions. The number of recent addresses fell from 6.077 million to five.390 million, a decrease of 11.3% in ten days.
Declining network participation indicates weaker speculative interest. New investors appear hesitant, citing limited short-term incentives. This lack of recent demand puts plenty of emphasis on existing holders supporting price stability and any recovery attempts.
New Solana addresses. Source: Glassnode
A recovery in SOL price is feasible
At the time of writing, Solana is trading near $126, remaining below the $130 resistance level. The price motion shows a consolidation somewhat than a breakout. The immediate goal for SOL is to reclaim $130, which might represent a shift in short-term momentum.
Falling outflows increase the likelihood of recovery. If current holders maintain holdings and inflows emerge, buying pressure could push SOL towards $130. A sustained move above this level would require continuous support and never short speculative spikes.
Downside risks remain as sentiment deteriorates. Renewed selling could push Solana below the $123 support. A break to this level could reveal $118 as the following downside goal. A lack of this support would undermine the optimistic outlook and reinforce near-term weakness.
The post Solana Price Depends on Existing SOL Holders, Here's Why appeared first on BeInCrypto.
Article source: beincrypto.com
The post Solana Price Depends on Existing SOL Holders, Here's Why appeared first on Crypto Adventure.
