Solana Hits $230, but Veteran Investors Are Taking Profits
Solana jumps 19% and flirts with $230. Yet, historical investors are liquidating their positions. The crypto network itself is attracting less and less interest. Simple technical rebound or fragile peak? Full analysis here.
In brief
- Historical investors of Solana are selling massively, betraying a lasting loss of confidence.
- The drop in new addresses slows adoption, thus weakening the current bullish momentum of the SOL token
Solana rises, but strong hands are unloading
The crypto Solana (SOL) posts a weekly increase of 19%. It even temporarily surpassed the $230 threshold. This bullish movement renews market focus on an asset still closely watched by traders.
However, a fundamental indicator clouds this picture. We refer to the long-term holders (LTH) who show clear signs of distrust. Their sales are indeed at a seven-month peak. This suggests a coordinated profit-taking strategy, counter to the current momentum.
This behavior indicates a lack of conviction in the continuation of the crypto rally. The mid-September bottom seems to have left a lasting impression. Faced with a rebound perceived as fragile, some prefer to secure their gains. This could increase selling pressure. Such dynamics weaken the bullish momentum, especially if the trend intensifies in the coming days.
Crypto network out of breath despite the rally
Another structural signal supports this observation: network growth, which is slowing markedly. The number of new active addresses on the Solana blockchain has fallen to a six-month low. This decline reflects a loss of attractiveness, just as the crypto asset seeks a second wind.
Breakdown: fewer new entrants implies a decrease in incoming flows, therefore a limitation of bullish potential in the short and medium term.
This stagnation opposes the conditions necessary to validate a lasting bullish reversal. Technically, the $232 threshold remains the resistance to break to confirm the momentum. A bullish breakout would aim for a SOL price at $242, the next zone of interest. Conversely, a rejection at this level paves the way for a relapse towards $221, or even $214. This would invalidate the current bullish hypothesis.
Between distrust from old holders and disinterest from new ones, the crypto asset Solana plays an uncertain tune . What happens next will depend as much on technical signals as on a return of confidence. To be continued…
