Solana Under $200: Crypto Stalled at $194, Critical Support at $186
NUPL Metric: Investors Still in Profit, But Big Gains Limited
Chaikin Money Flow Indicator Shows Rising Inflows: If Market Improves, Recovery Likely High
Solana has shown weakness in recent price action, dropping below the $200 level. This decline is in line with the general market downtrend. Investors are skeptical that Solana can stage a significant recovery and are focused on taking profits. The altcoin is in a risky position due to its lack of momentum.
Solana Investors Remain Cautious
The Net Unrealized Profit/Loss (NUPL) metric shows that most Solana investors are still making profits and are bullish on the overall market. However, Solana’s past lulls at these price levels are making investors cautious. This leaves a large price drop possible, while also preventing a sustained uptrend from forming.
Decreased volatility is a characteristic of this profit zone, keeping Solana away from both steep declines and strong rallies. Current market sentiment suggests that investors are waiting for clearer signals of recovery and are taking a cautious approach that is not completely bearish.
Chaikin Money Flow (CMF) Highlights Rising Inflows
On a macro level, the Chaikin Money Flow (CMF) indicator is signaling an increasing inflow, indicating a recovery potential for Solana. The CMF’s position above the neutral line suggests increasing investment inflows are being directed to the cryptocurrency, which has historically supported price recoveries.
Despite these increasing inflows, the market is still showing signs of decline, but we are seeing investors slowly starting to return. However, for the recovery to continue, these inflows will need to be sustained and aligned with broader market conditions.
Solana’s Price Action and Critical Support Levels
Solana has lost 11% of its value over the past 24 hours, falling below the $200 level and holding at $194. However, the altcoin remains above the critical support level at $186, which remains a significant barrier for Solana.
Current indicators suggest the market will remain calm in the short term, with a recovery likely if Solana can break above $201 and hold that level as support. However, a return to the all-time high of $264 will require stronger bullish momentum and improved market conditions.
Market Risk in Downtrend
If the market continues its downtrend, there is a risk that Solana could break below the $186 support. If this scenario plays out, the price could drop to $175 or lower, invalidating bullish expectations and raising investor concerns.