Solana fell sharply to a multi -month minimum against the background of the general weakness of the market. The current descending dynamics, aggravated by technical indicators, casts doubt on the restoration.
The future price dynamics of SOLANA largely depends on the success of Bitcoin: the BTC rebound can support the SOL turn.
SOLANA investors need a push
The indicator of net unrealized profits/losses of long -term holders (Net Unrealized Profit/Loss, Lth Nupl) entered the zone of fear, signaling the growth of market stress. Being on a 16-month minimum, this indicator reflects the influence of the general decline in the market on SOL investors. When long -term holders suffer losses, the likelihood of a significant pressure on the sale increases. This can lead to a further price reduction.
The mood of these investors can spread to retail traders if fear intensifies. Mass sale will enhance bear pressure, complicating the restoration of SOL. If bitcoin does not stabilize and the market conditions do not improve, the confidence of investors in SOLANA will probably remain weak in the near future.
Solana retains a strong correlation with bitcoin: now it is 0.92. In this case, this is a bear indicator. BTC cannot gain a foothold above $ 80,000, and its further weakening can pull SOL down.
If Bitcoin cannot regain the previous impulse, Solana risks continuing to fall. The dependence of altcoin on stability BTC makes it more vulnerable. Until Bitcoin is recovering over the key levels of support, Solana will probably remain under pressure, continuing the descending trend.
SOL price is falling
The price of SOLANA has decreased by 28% over the past day. This fall is associated with the general bearish trend in the market and the appearance on the SOL “Cross of Death” schedule last week. This signal may promise a further decline if significant customer pressure does not appear.
At the moment, SOL is holding above $ 120 and is trying to stabilize. However, if market conditions do not improve, altcoin can break through an important level of support by $ 128. In case of loss, more significant correction is likely.
If investors decide to take advantage of the price reduction and begin to actively buy, Sol can return to $ 137 and turn it into a support level. A successful breakthrough above this mark can lead to growth to $ 155. This will cancel pessimistic forecasts. The mood in the market and the dynamics of bitcoin remain key factors for the restoration of Solana.
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Source: Cryptocurrency
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