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Solana’s price struggles against robust resistance levels, as recent on-chain metrics indicate tactical redistribution and dominance of long liquidation.
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The strategic price movements suggest profit-taking behavior amongst investors and a preparatory phase for potential consolidation.
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According to Glassnode, around 27 million SOL tokens last exchanged hands within the critical price range of $144 to $156, emphasizing a significant resistance area.
Explore Solana’s current resistance at $144 and potential support zones as market dynamics shift. Key insights from recent trading data are analyzed.
Critical Resistance Levels for Solana – $147 Roadblock and Support at $123
Solana [SOL] encounters stiff resistance near $144 as investor sentiment shifts, revealed through on-chain analysis. Notably, Glassnode’s insights indicate that nearly 27 million SOL were transacted within the $144 to $156 range, establishing it as a formidable resistance zone.
Source: Glassnode
Moreover, an additional 26.6 million SOL shifted hands between $132 and $144, illustrating a densely packed supply cluster that heightens the overall selling pressure in this price band.
Predictable Market Behavior Amidst Holding Patterns
The concentration of investor holdings around these price levels leads to increasingly predictable market responses. When SOL revisits these ranges, intensified selling pressure is likely to emerge, particularly as observed during prior trading periods.
Evidence from the period of 19-31 March indicates signs of profit-taking and reaccumulation in Solana’s supply data. Glassnode recorded a 0.3% increase in tokens transacted at $144.54 while holdings at $147.49 dropped by 0.1%, signaling diminished confidence at prior highs. Investors are also showing tendencies to gravitate towards lower price zones, reinforcing support between $123 and $144.
Accumulation metrics indicate a notable rise in holdings near $112, which have surged from 4 million to 9.7 million SOL since January, showcasing a calculated approach to redefining support and resistance thresholds.
This prevailing trend underscores a cautious “break-even” mentality among holders who secured positions between $144 and $147, raising concerns about potential intensified selling unless buyer support intensifies to mitigate this pressure.
Will Key Support Levels Hold Against Market Volatility?
A significant support zone has emerged between $94 and $100, where over 21 million SOL—approximately 3.5% of the total supply—last transacted. This defined range presents a buffer against future price declines.
Funding rate trends illustrate a corresponding evolution in market sentiment, marking pivotal shifts in trader expectations.
Source: Coinalyze
Between 18 to 24 March, SOL prices surged from $120 to over $140, with funding rates peaking at +0.0035 as long positions gained traction. However, the decline commencing on 25 March to $125 coincided with funding rates dropping to -0.0047, a clear sign of a bearish turn in trader outlook.
This downturn illustrates a reduction in long exposure and a burgeoning sense of caution among traders. By the end of March, the stabilization of funding rates near neutral values hinted at indecision and a period of reduced volatility—an indicator that the market is consolidating as it processes prior gains and strategizes for forthcoming movements.
Preparing for Potential Market Shifts
Liquidation patterns during this timeframe lend additional credence to this cautious market perspective.
Source: Coinalyze
Data collected from 24 March to 2 April shows that out of $7.6 million in liquidations, long positions accounted for $5.6 million. A notable example occurred on 28 March when SOL’s price dropped sharply from $137 to $125, triggering liquidations worth $3 million. The overwhelming majority of liquidated positions—73.68%—were long, indicating excessive bullish leverage in the market.
This unwinding led to increased short-term volatility and exacerbated the price decline. Additionally, exchange data demonstrated that liquidation activity was relatively balanced across platforms like Binance and OKX, signaling a widespread market response rather than isolated incidents.
Furthermore, Solana’s daily active addresses, which peaked at 6.5 million on 20 January, have plummeted by 46%, settling at approximately 3.5 million by 2 April.
Source: Token Terminal
Despite significant fluctuations, daily activity has remained stable above 2.5 million since March—indicating a consistent but less actively engaged user base. The earlier spikes in January and March appear temporary, likely attributed to specific campaigns or launches, reflecting that Solana’s growth trajectory is highly event-driven, albeit supported by a dedicated core community.
Market Dynamics – A Balance Between Buyers and Sellers
Analyzing the comprehensive data reveals several discernible trends. For instance, token flows indicate an active redistribution from the $147 range into lower price bands, effectively easing overhead resistance and reinforcing support below $144.
Presently, it appears that Solana will continue to oscillate below the $130 level, engaging in consolidation as the market awaits a decisive triggering event that could establish clearer momentum.
