Solana Bulls Reclaim $200, But History Points to a Downtrend. After falling below $200 intraday, the Solana price has shown a slight recovery, trading back around $203. This small recovery limited the daily losses to around 1%, but the overall structure remains weak. The bulls managed to reclaim the $200 level, but on-chain charts suggest this momentum may not last. Long-Term Investors Are Sitting on High Gains The first warning sign comes from the Net Unrealized Profit/Loss metric for long-term holders. This metric tracks whether investors are sitting on paper profits or losses. When the Profit/Loss metric is high, it suggests that holders may be inclined to realize their profits. On August 28, Solana's long-term Profit/Loss metric ratio reached 0.44, reaching a six-month high and approaching its March 2 peak of 0.4457. This period's rise led to a 41% correction in less than two weeks, with Solana's price falling from $179 to $105. More recently, on July 22, the Profit/Loss metric ratio fell 23% from its peak. While the latest Profit/Loss metric ratio has fallen slightly to 0.40, it remains high compared to recent months. For example, on March 3rd, the price of Solana fell from $142 to $118, a 17% drop. Another surge on March 25th caused the price to slide from $143 to $105. Although the move was delayed, the correction from $205 to $158, as it did after July 16th, demonstrated just how strong the signal could be. The last surge came on August 27th, when Solana was trading around $203. While the correction has only just begun, this pattern suggests that long-term holders may be selling into strength, confirming what the Profit/Loss metric data suggests. Key Solana Price Levels Confirm Risk The technical chart completes the picture. Solana is trading around $203, turning the $201 resistance into temporary support. However, the bullish scenario will prevail if the daily close remains above this level. A drop below $196 or $191 would turn the momentum bearish, and a break below $175 would confirm a deeper correction. On the upside, bulls need to quickly regain higher levels, but with long-term holders realizing their profits and Coin Days Destroyed showing the coin moving higher, the risk of further declines remains. However, if Solana price clearly recovers $207 and a full candle forms above this level, the downtrend could end. Currently, metrics suggest that Solana's recovery above $200 may not be sustained without stronger support.
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Solana Bulls Reclaim $200, But History Points to a Downtrend.
After falling below $200 intraday, the Solana price has shown a slight recovery, trading back around $203. This small recovery limited the daily losses to around 1%, but the overall structure remains weak.
The bulls managed to reclaim the $200 level, but on-chain charts suggest this momentum may not last.
Long-Term Investors Are Sitting on High Gains
The first warning sign comes from the Net Unrealized Profit/Loss metric for long-term holders. This metric tracks whether investors are sitting on paper profits or losses. When the Profit/Loss metric is high, it suggests that holders may be inclined to realize their profits.
On August 28, Solana's long-term Profit/Loss metric ratio reached 0.44, reaching a six-month high and approaching its March 2 peak of 0.4457. This period's rise led to a 41% correction in less than two weeks, with Solana's price falling from $179 to $105. More recently, on July 22, the Profit/Loss metric ratio fell 23% from its peak.
While the latest Profit/Loss metric ratio has fallen slightly to 0.40, it remains high compared to recent months.
For example, on March 3rd, the price of Solana fell from $142 to $118, a 17% drop. Another surge on March 25th caused the price to slide from $143 to $105. Although the move was delayed, the correction from $205 to $158, as it did after July 16th, demonstrated just how strong the signal could be.
The last surge came on August 27th, when Solana was trading around $203. While the correction has only just begun, this pattern suggests that long-term holders may be selling into strength, confirming what the Profit/Loss metric data suggests.
Key Solana Price Levels Confirm Risk
The technical chart completes the picture. Solana is trading around $203, turning the $201 resistance into temporary support. However, the bullish scenario will prevail if the daily close remains above this level.
A drop below $196 or $191 would turn the momentum bearish, and a break below $175 would confirm a deeper correction.
On the upside, bulls need to quickly regain higher levels, but with long-term holders realizing their profits and Coin Days Destroyed showing the coin moving higher, the risk of further declines remains.
However, if Solana price clearly recovers $207 and a full candle forms above this level, the downtrend could end. Currently, metrics suggest that Solana's recovery above $200 may not be sustained without stronger support.