Solana Faces Downward Pressure Amid Long-Term Holder Selling and Declining New Investor Interest

• Solana’s liveliness metric surged, showing increased selling by long-term holders, which adds downward pressure on price.

• The number of new addresses declined by 1.4 million in 48 hours, reflecting reduced interest from new investors.

• SOL currently trades at $187; breaking below $176 could deepen losses, while reclaiming $188 may lead to a rebound toward $201.

Solana price dips below $200 as long-term holders sell and new investor interest wanes. Stay updated on SOL’s market trends with COINOTAG.

Why Are Solana Investors Turning Bearish?

Solana’s liveliness metric, which tracks long-term holder activity, has sharply increased to a monthly peak, signaling significant selling pressure. This surge indicates that many long-term holders are offloading their SOL tokens, contributing to the current price decline. Since these holders heavily influence market dynamics, their selling intensifies downward momentum, making recovery challenging.

How Is the Decline in New Addresses Affecting Solana’s Market Momentum?

The creation of new Solana addresses has dropped by 1.4 million over the past 48 hours, reaching a monthly low. This decline highlights a waning interest from new investors, which is critical for sustaining upward price momentum. With fewer fresh participants entering the market, Solana’s ability to reverse its downtrend diminishes, prolonging bearish conditions.

Solana Liveliness. Source; Glassnode

What Is the Current Price Outlook for SOL?

Solana is trading near $187, just below the resistance level of $188. After failing to sustain a breakout above $200, the altcoin faces increased selling from long-term holders and reduced buying interest. If SOL falls below the $176 support level, losses could deepen, confirming bearish sentiment.

Conversely, if market conditions improve and SOL reclaims $188 as support, it may target a recovery toward $201, offering a potential rebound opportunity.

Solana New Addresses. Source; Glassnode

Solana Price Analysis. Source: TradingView

Frequently Asked Questions

What causes Solana’s liveliness to spike?

Solana’s liveliness spikes when long-term holders move or sell their tokens. This behavior typically signals increased selling pressure, which can negatively impact the price.

Why is the number of new Solana addresses important?

The number of new addresses reflects investor interest. A drop means fewer new investors are entering the market, which can slow price growth and extend bearish trends.

Key Takeaways

• Long-term holder selling: Increased liveliness indicates significant selling pressure on Solana.
• New investor interest waning: A sharp drop in new addresses signals reduced market participation.
• Price levels to watch: Support at $176 and resistance at $188 will determine Solana’s near-term direction.

Conclusion

Solana’s recent price decline below $200 is driven by increased selling from long-term holders and a notable drop in new investor activity. These factors contribute to a bearish outlook, with critical support at $176. However, if SOL reclaims $188, it may regain upward momentum toward $201. Monitoring these dynamics is essential for understanding Solana’s market trajectory.