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Note that the price of Solana remains under constant pressure, continuing its three-week downtrend amid weak investor support and bearish macroeconomic conditions.
SOL is trading near $80, reflecting declining demand in the overall cryptocurrency market. In addition, there are signs of weak conviction among long-term holders of the currency.
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Solana’s profitable supply falls to its lowest level in several years
The series data indicate that The profitable amount of Solana It decreased to 15%. This represents the lowest level since November 2022. A lower profitable amount usually indicates that most holders of the coin are in loss, which often reduces the incentive to sell more.
History has shown that this low profitability coincides with phases of price stability. Selling pressure tends to decrease when fewer investors remain in profit. However, current conditions are different due to general market weakness and deterioration of long-term currency holder sentiment, limiting the usual stabilizing effect.
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One of the main indicators of change is the level of vivacity, which measures the activity of the long-term holders of the currency. The recent increase in activity has indicated an increase in currency movement from previously dormant portfolios. This behavior shows that Long-term Solana holders distribute Their coins instead accumulate during the downturn.
As long-term holders begin to sell, macro momentum weakens. His participation often reflects his strong conviction. The continued increase in the activity index indicates the erosion of confidence, which could deepen the downward trends and reduce the likelihood of a quick recovery of Solana’s price.
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Why are long-term holders (LTH) selling?
Long-time holders showed signs of selling towards the end of January. Net unrealized gains and losses for long-term holders, or NUPL, fell below zero. This change signals capitulation, meaning that long-term holders have moved into massive losses.
The NUPL index for Solana long holders last fell below zero in May 2022. At that time, capitulation led to widespread distribution before eventual stabilization. Long-term investors who sell during periods of loss often express psychological exhaustion rather than tactical repositioning.
Long holders capitulated on January 24, but a spike in the activity index appeared about a week later. This deadline suggests that holders initially expected a rebound to occur. But as Solana’s price continued to drop, those investors eventually sold. If this dynamic is maintained, the chances of recovery can weaken further.
The SOL price trend continues
The price of Solana is trading close to $80, still in a specific trend that started three weeks ago. SOL is just above the support level of $79. Further weakness in investment demand increases the possibility of a break below this level.
If the long-term holders continue to sell and the downward trend remains intact, SOL may lose the support of $ 79. If the break is confirmed, the Solana price may go towards $ 70, which corresponds to the 1,786 Fibonacci extension level. This area represents the next major technical support.
Alternatively, stopping short-term holdings can improve momentum. If SOL breaks the downtrend line and crosses the $88 resistance, the pace of recovery may accelerate. A move towards $95 will negate the negative outlook and indicate renewed bullish strength in Solana’s price action.
