Solana price has recently made efforts to recover the losses it experienced earlier this month. However, these attempts have been stalled by crucial holders choosing to sell, putting significant pressure on the price.
Despite this, new investors remain bullish, hoping for further upside in the near term.
Solana Holders Are Selling
Last week, Solana’s long-term holders (LTHs) shifted from selling to accumulation, offering hope for a price recovery. Unfortunately, this shift was short-lived, as the HODLer net position change has since dropped back below the zero line.
This indicates that LTHs are back to selling, which could exert downward pressure on the price.
Given that LTHs control a large portion of the market’s supply, their selling activity significantly influences Solana’s price action.
This selling trend could lead to further declines, especially if the momentum continues in the coming days.
Solana HODLer Net Position Change. Source: Glassnode
On a more positive note, Solana is experiencing a sharp uptick in new addresses, signaling growing interest in the altcoin. This trend highlights that, despite volatility, new investors are optimistic about Solana’s potential.
The increase in new addresses suggests that Solana is gaining traction, particularly among those looking to capitalize on potential price gains.
The influx of new investors indicates that there is still substantial confidence in Solana’s future. This optimism could play a critical role in helping the cryptocurrency weather its recent volatility.
Solana New Addresses. Source: Glassnode
SOL Price May Suffer
At the time of writing, Solana is trading at $146, reflecting a 5.6% increase over the last 24 hours. The altcoin is currently facing resistance at $150, a crucial barrier for the price to surpass.
However, unless stronger bullish signals emerge, Solana may struggle to break through $150 before Q3 begins.
The altcoin could hover around the $144 mark or even dip to $136. This could result in a consolidation period as investors await clearer cues from the broader market.
Solana Price Analysis.. Source: TradingView
On the other hand, if the broader market turns bullish, Solana’s price could surpass the $150 resistance level.
A break above this price, followed by flipping $152 into support, would invalidate the bearish outlook and signal a strong upward move for the altcoin.
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