Solana’s Price Wobbles Below $210, Investors’ Interest Declines

Solana’s price has struggled to break the $270 resistance for the past three months, pushing the cryptocurrency into a vulnerable position. 

Currently trading below $210, SOL is at risk of losing crucial support levels. The broader market’s weakness and investor behavior are further amplifying this downturn.

Solana Is Losing Interest

Over the last few days, Solana has seen a decline in the number of new addresses. These new addresses are crucial as they represent fresh investors entering the market.

The decrease in new addresses suggests that Solana is losing traction in the market. This lack of new interest could lead to reduced netflows, which may undermine its recovery prospects.

The drop in new addresses could have broader implications for Solana’s price. As the influx of fresh capital wanes, SOL could struggle to maintain upward momentum. The decrease in new investor participation could also signal reduced confidence in the project, potentially leading to further price declines unless a shift in sentiment occurs.

Solana New Addresses. Source:  Glassnode

The overall macro momentum for Solana shows signs of weakness. The Chaikin Money Flow (CMF), a key indicator of market inflows and outflows, has been struggling to hold above the zero line. A CMF below zero signals that outflows are starting to dominate, which could exacerbate the downward trend for Solana. 

With the CMF trending negatively, it’s clear that market sentiment is shifting. Investor confidence seems to be waning, and with declining inflows, Solana could face increased pressure. This bearish behavior could lead to a worsening situation for SOL, pushing it to lower price levels unless there’s a strong reversal in market sentiment.

Solana CMF. Source:  TradingView

SOL Price Prediction: Uptrend Is Intact

Solana’s price is currently sitting at $204, maintaining support above $201 despite a consistent decline in the past few days. The altcoin’s inability to break through the $270 resistance in recent months has left it vulnerable to downside risks. The $201 support level will be critical in determining its next move.

If current market trends persist, Solana may struggle to hold above $200. There is a strong possibility that SOL could break below the $200 level, especially if the broader market conditions do not improve. Should this happen, SOL could fall to $183, marking a significant downturn in price.

Solana Price Analysis. Source:  TradingView

However, if Solana can hold above the $201 support level and start to recover, it could target a rise toward $221. Reclaiming this resistance level would mark a significant shift in momentum, potentially invalidating the current bearish outlook and paving the way for a recovery toward higher price levels.