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Solana posted a strong intraday rebound after recent losses pressured the price earlier this week. Solana rebounded strongly as the broader cryptocurrency market added nearly $200 billion in value.
Aggressive buying on the dip prevented deeper losses, helping Solana to stabilize and post daily gains of 12% despite continued market uncertainty.
Solana’s long-term holders are not optimistic either
The chain’s data showed that the buying momentum of long-term holders has slowed. Hodler’s net position fell, indicating reduced accumulation by investors who usually support prices during downturns. This change followed The sharp decline of Solana Over the past week, it seems to have weakened the conviction of long-term investors.
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Whether the recovery continues depends on whether long-term holders resume accumulation. If buying momentum continues to be weak, Solana may struggle to achieve a sustained rally. Declining support for this category limits demand absorption, increasing the risk that short-term rallies will fade without broader buying by long-term investors.
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The momentum indicators indicate that the selling pressure may be approaching exhaustion. The Money Flow Index is approaching the oversold limit below 20.0. Entry into this zone usually indicates oversold, and often precedes periods of stability or short-term rebounds in the price.
Historically, Solana has entered oversold territory only three times in the past two and a half years. Each case coincides with a notable stabilization or reversal in the price. If the index falls further, it may… Solana helps To stop its decline and attract new interest from traders to buy on the decrease.
The price of SOL is still likely to recover
Solana’s price is trading near $88 at the time of writing, having risen 12% in the last 24 hours. Before the session, Solana fell about 13% to reach an intraday low. Strong diving buying prevented a close near $67, highlighting active demand at lower levels.
Broader market support could allow SOL to rise above $90 in the near term. A bullish recovery requires retrieving $100 as support. Holding this level ensures that momentum improves and paves the way for a move near $110 as confidence returns.
Continue to face downside risk if long holders continue to sell. The failure to regain $ 100 will limit the upside and could keep Solana in a range close to $ 90. The price may fall towards $ 78 in weaker conditions. Such a move invalidates the bullish hypothesis and extends the correction phase for Solana.
