Solana (SOL) has failed to maintain its position above the critical $200 level, facing strong bearish pressure as investor sentiment deteriorates. The altcoin briefly crossed the psychological resistance but was quickly pushed back, reflecting a shift in market dynamics.
As of now, Solana is trading near $187, unable to breach the $188 resistance. The recent pullback is driven by key on-chain signals, most notably the Liveliness metric, which measures long-term holder (LTH) activity. Over the past 12 days, Liveliness has sharply increased, reaching a monthly high—a typical indicator of distribution among seasoned investors.
Long-Term Holders Drive Downward Pressure
Long-term holders have historically influenced market trends, and their current sell-off is significantly contributing to Solana’s decline. With large holders offloading their positions, bearish momentum is intensifying, placing more downward stress on the price action.
This aligns with the broader macro signals showing a cooling market. New investor interest is dropping sharply. According to recent data, Solana has seen a dramatic drop in new wallet creation—1.4 million fewer new addresses were recorded in just 48 hours. This marks a monthly low and reveals a noticeable dip in enthusiasm among fresh market participants.
Dwindling New Addresses Highlight Lack of Fresh Capital
A decline in new addresses is often a red flag for future price appreciation. It suggests that the project is failing to attract new capital, and fewer participants are willing to buy in at current levels. Without renewed retail or institutional interest, recovery becomes a daunting task.
The absence of new buyers combined with long-term holder sell pressure, sets the stage for a fragile market structure. Unless Solana manages to reclaim the $188 resistance as support and attract renewed interest, a potential slip below the $176 support level appears likely. A break below this mark could trigger a deeper correction and confirm the bearish trend.
Is There a Recovery Path for Solana?
Despite current bearish signals, all hope is not lost. Should broader market conditions improve—driven by factors such as Bitcoin’s stabilization or renewed interest in altcoins—Solana could potentially recover. Regaining $188 as a support zone would be a first step toward challenging the $201 zone once again.
However, without immediate changes in investor behavior, the current setup suggests a cautious outlook in the short term.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
