SOL Price at Risk of Dropping Below $200

The price of Solana (SOL) is facing significant downward pressure, with technical indicators and on-chain data suggesting a potential decline below the critical $200 mark. The current bearish sentiment is being driven by increased selling activity from long-term holders and a surge in liquidations.

Key Factors Driving the Downturn

The article highlights several key factors contributing to Solana's recent price struggles: Long-Term Holder Distribution: Data from Glassnode indicates a rising "Liveliness" metric, which suggests that long-term SOL holders are selling their tokens. This trend, combined with consistently negative readings from the "Hodler Net Position Change" metric, points to a lack of accumulation and a growing desire for profit-taking among key investors.Surge in Liquidations: The Solana futures market has seen a year-to-date high in long liquidations, with 97% of all wiped-out positions coming from traders betting on a price increase. This mass liquidation event has eroded confidence among traders and added to the bearish momentum.Risk of Dropping to Key Support: The combination of selling pressure and a lack of new buyer confidence increases the risk of SOL's price falling toward the next key support level at $195.55.

📌 Conclusion: A Critical Juncture for SOL

The current market conditions present a significant challenge for Solana. The behavior of long-term holders and the high rate of liquidations suggest that bearish sentiment is dominating the market. While a rebound is possible if strong buy-side demand emerges, the immediate outlook is for continued pressure, which could lead to a test of lower support levels.

🔐 Disclaimer

This article is for informational purposes only and does not constitute financial advice. The cryptocurrency market is highly volatile, and investments carry a significant risk. You should always conduct your own research (DYOR) and consult with a professional financial advisor before making any investment decisions.