Solana (SOL) has struggled to gain momentum over the past couple of weeks, and its price has failed to recover significantly.
Despite this, the altcoin has seen signs of stabilization, with long-term holders (LTHs) showing increasing support. This shift could indicate a potential price rise, provided the current trend holds.
Solana Investors Move To Accumulate
The HODLer Net Position Change for Solana has been positive for the past four days, with consistent green bars indicating that LTHs are accumulating more SOL. This is the longest streak of accumulation in over six months, signaling confidence from long-term investors.
As these investors continue to add to their positions, Solana could build a solid foundation for a price rebound.
LTHs tend to significantly influence Solana’s price, as their holdings reflect longer-term confidence in the cryptocurrency. If this trend continues, the growing support from LTHs could provide the necessary backing to help Solana break through key resistance levels.
Solana HODLer Net Position Change. Source: Glassnode
However, despite the support from LTHs, Solana’s overall market sentiment is still mixed.
New addresses, an important metric for investor interest, have recently hit a six-month low. This indicates that fewer new investors are entering the market, reflecting a lack of optimism for a recovery in the short term. The last time new address activity was this low was in October, suggesting that investor confidence is currently subdued.
The drop in new addresses could signal caution among potential buyers, affecting the altcoin’s overall momentum. While LTHs continue to accumulate, the lack of fresh interest from new investors could delay any significant upward movement for Solana.
Solana New Addresses. Source: Glassnode
SOL Price Vulnerable To Correction
Solana is currently trading at $119, holding just above the crucial support level of $118. While the altcoin is attempting to make its way to $135, mixed market sentiments suggest it may struggle to break through this resistance.
The price could consolidate between $118 and $135 as it builds enough momentum for a potential rally.
If Solana manages to bounce back, it may continue to trade within this range, allowing time for the market to stabilize and support further price appreciation. Consolidation could help SOL gather strength before another attempt to breach the $135 level.
SOL Price Analysis. Source: TradingView
However, if the price falls below $118, it could signal a shift in momentum, invalidating the bullish-neutral outlook. A drop below this support level would likely lead to further declines, potentially taking Solana down to $109, which would extend investors’ losses.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
