Solana’s recent price action has shown signs of weakness, with the altcoin falling below $200 amid broader bearish market signals.
Investors are increasingly focused on locking in profits as skepticism grows over Solana’s ability to sustain a significant recovery. The lack of momentum has left the altcoin in a precarious position.
Solana Investor Retraction
The Net Unrealized Profit/Loss (NUPL) indicator indicates that Solana investors remain bullish, with many still holding profits. Historically, Solana’s presence in this zone has often resulted in stagnation. While this scenario reduces the likelihood of sharp declines, it also decreases the chances of sustained upward momentum.
Reduced volatility, a typical feature in this profit zone, has kept Solana away from significant declines and major rallies. For now, this sentiment reflects a cautious but not entirely bearish market as investors await clearer signs of recovery.
Solana NUPL. Source: Glassnode
On the macro front, the Chaikin Money Flow (CMF) indicator is signaling an increase, a positive sign for Solana’s recovery potential. The CMF’s position above the neutral line reflects increased inflows into the cryptocurrency, which historically supports price recoveries.
This increase in inflows suggests that despite broader bearish signals, investors are gradually returning to the market. However, sustained momentum will require these inflows to persist and align with a shift in broader market conditions that favors growth.
Solana MACD. Fonte: TradingView
SOL Price Prediction: Finding Momentum
Solana’s price has dropped 11% in the past 24 hours, bringing the altcoin to $194 after falling below the $200 mark. Despite the decline, Solana managed to hold above the critical support level of $186, which remains a key level for the asset.
Current indicators suggest a quiet few days ahead, with recovery likely if Solana can overcome the $201 resistance level and turn it into support. However, a recovery to its all-time high (ATH) of $264 would require stronger upside momentum and improved market conditions.
Solana Price Analysis. Source: TradingView
However, if bearish market signals persist, Solana is at risk of falling below the $186 support. Such a scenario could lead to further declines, potentially sending the price to $175 or lower, invalidating the bullish outlook and intensifying investor concerns.
The article Solana Struggles to Regain Strength After Losing $200 Support appeared first on BeInCrypto.
