Solana Price’s 4-Month Uptrend Is Intact, But It May Not Last Long

by

Solana’s price has been holding onto a strong uptrend for nearly four months-impressive, isn’t it? With the altcoin now among the finest assets in this market cycle, it’s got the crypto world buzzing. But don’t get too comfortable-its days at the top could be numbered.

The recent surge brought SOL to the edge of breaking the $250 mark. Almost there! But then, as if on cue, the sentiment shifted faster than a poorly-timed punchline at a comedy show. Investor participation slowed, and boom-momentum was gone, just like that. And now, with holders pulling back, the rally is facing a serious existential crisis.

Solana Holders Pull Back

Investor activity on the Solana network has dropped like my enthusiasm for morning meetings. The number of active addresses is now at a 13-month low. Yes, you heard that right-13 months. Clearly, engagement is taking a hit. Retail traders are holding onto their tokens like they’re a rare collectible, hesitant to trade in these uncertain times.

When the user base shrinks, you can almost hear the network groaning under the pressure. It’s simple-fewer transactions mean less utility, and that’s a recipe for price instability. Solana might be at risk of losing the fundamental support it needs to keep the rally alive. Without consistent transaction volume or user-driven demand, well, things don’t look so great.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. Trust me, you’ll thank me later.

On a larger scale, Solana’s technical structure remains cautiously optimistic, despite some short-term warning signs. Take the Chaikin Money Flow (CMF) indicator, for instance. It’s slipping below the zero line, signaling rising investor withdrawals. This is like a flashing red light for traders. It seems they’re moving their liquidity elsewhere. Hmm, wonder why?

But don’t get too excited about the downward spiral just yet. The CMF still shows an overall upward trend-yes, that’s right, Solana’s long-term prospects aren’t all doom and gloom. If this uptrend holds, it might just be enough to stabilize the price action. So, for now, the show isn’t over.

SOL Price May Fall

As of now, Solana is trading at $222, just above the $221 support level. It’s been on a steady rise for the past three and a half months, making this level a pivotal point for the market. You know what they say-when you’re climbing a mountain, one wrong step and it’s a long way down.

If selling pressure intensifies, we could see a dip to $213. And if the outflows really start to pick up speed, brace yourselves-a test of the $200 level might just happen, breaking the multi-month uptrend like a bad breakup.

But hey, there’s always the other side of the coin. If Solana manages to rebound from the $221 support level and sentiment swings back to the positive side of the spectrum, it could climb up to $232 and beyond. This would completely flip the bearish outlook on its head and might just reignite the rally. Can you feel the suspense? 😏

Read More

2025-10-09 01:13