Solana's Recent Recovery Sparks Hope for Investors
Solana has been experiencing a downward trend in the past month, causing concern among investors. However, a remarkable 24% surge in SOL price indicates a potential turnaround. Currently trading at $161, there are signs pointing towards a possible recovery.
Despite the positive movement, there is still a looming risk of selling pressure, particularly with short-term holders (STHs) seeing increased profits.
Solana's Short-Term Holder Net Unrealized Profit/Loss (STH NUPL) metric shows that STHs are entering into profitable territory, which is a significant shift that could prevent further market capitulation. If profits continue to rise, investors might opt to hold onto their SOL instead of selling, which can help stabilize the market.
Breaking through the NUPL threshold could instill confidence in SOL holders, as historical data shows that positive changes in this metric have led to potential rallies for the altcoin. If investors hold on to their positions, Solana could potentially see a sustained upward trend, attracting more capital and improving overall market sentiment.
Solana's macro momentum is still strong, as indicated by the Chaikin Money Flow (CMF) indicator. The recent uptick in CMF signifies strong buying pressure, with an influx of capital over the past few days. This demonstrates that investors are remaining loyal to Solana despite recent market volatility.
What's interesting to note is that these capital inflows began even before Solana's addition to the US Crypto Strategic Reserve, indicating that both institutional and retail investors see long-term value in the asset. Continued inflows could support Solana's upward trajectory, possibly reversing its previous bearish pattern.
Solana Price Outlook
After a notable 24% surge and subsequent retracement, Solana is currently holding at $161. Maintaining this support level is crucial, with a potential bounce propelling SOL towards $183, marking the next resistance point.
If Solana manages to reclaim $183 as support, it could pave the way for a move towards $200. This psychological barrier is significant, and breaching it could confirm Solana's recovery. A decisive break above $200 would further bolster bullish momentum, attracting more buyers to the market.
Conversely, a failure to breach $183 may lead to renewed selling pressure. A drop below $161 would challenge the bullish outlook, potentially reigniting a downtrend that could see Solana revisiting levels around $150 or even dip lower to $138.