$SOL Why selling your SOL holdings now might not be smart - AMBCrypto Analytics

Can SOL hold on to the same status after the latest crash? The answer to that question may come down to one word. Attention. SOL was one of the few top coins that delivered a rally similar to what we saw in previous bull runs.

A big part of SOL’s success was because the Solana blockchain managed to hijack the memecoin narrative. The latter played out in the network’s favor this year, thus driving demand for SOL.

The recent market crash threatens to introduce a shift to the demand dynamics. The threat of the bullish phase being curtailed may introduce a more cautious approach, hence a shift from the memecoins focus.

While the memecoin hype coming to an end is real, SOL’s price action may indicate something different. The cryptocurrency tanked by as much as 42% from its July lows to the bottom range of the recent FUD-filled retracement.

However, it also bounced back just as sharply as it fell.

The dip pushed SOL as low as $110 on 5th August. It exchanged hands at $139.87 at press time, courtesy of a 26% recovery.

It is also worth noting that despite the sell pressure, price still closed above a key support level at the $126 price range. A bold statement that signals what the market currently perceives as SOL’s bottom range.