Home Altcoins News Solana Faces Sell Pressure as $144 Resistance Holds

Solana Faces Sell Pressure as $144 Resistance Holds

Solana Sell Pressure

Solana (SOL) has been encountering increased resistance around the $144 price point, with recent on-chain data signaling potential sell pressure. A large amount of SOL tokens, approximately 27 million, last changed hands between $144 and $156, forming a dense supply zone that is proving difficult for the altcoin to break through. Additionally, data from Glassnode highlights another cluster of 26.6 million SOL being traded between $132 and $144, further contributing to the resistance.

Redistribution and Profit-Taking Behavior

Recent market activity shows signs of strategic redistribution, particularly between $144 and $147. Solana’s price behavior between March 19 and March 31 indicated that profit-taking was occurring, with holdings at $144.54 rising by 0.3%, while holdings at $147.49 decreased by 0.1%. This suggests a shift in investor sentiment, with many traders exiting their positions at recent highs. Moreover, many investors appear to be rotating into lower price zones, especially between $123 and $144, which has created a support range for Solana.

Interestingly, Solana’s accumulation at the $112 level has been rising significantly, with holdings growing from 4 million SOL in January to 9.7 million SOL by the end of March. This shift highlights a recalibration of key support and resistance levels, which could influence future price movements.

The Importance of Support Levels

While resistance remains strong, there are key support zones that could help Solana avoid further declines. One such zone lies between $94 and $100, where 21 million SOL last changed hands. This support level is significant, as it accounts for about 3.5% of the total supply. If Solana experiences a price drop, this range could cushion any further declines.

However, recent trends in funding rates have indicated shifting sentiments in the market. From March 18 to March 24, Solana’s price rose from $120 to over $140, causing a spike in funding rates as long positions increased. But after March 25, funding rates turned negative, hitting lows of -0.0047. This shift suggested that traders were growing more cautious, reducing their long exposure in anticipation of a possible downturn.

Liquidation Trends and Volatility

Liquidation data from March 24 to April 2 further supports the idea that market sentiment is shifting. A total of $5.6 million of the $7.6 million in liquidations during this period came from long positions. On March 28, Solana’s price dropped from $137 to $125, triggering $3 million in long liquidations. Long positions accounted for nearly 74% of all liquidations, underscoring the excessive bullish leverage in the market. The unwinding of these positions contributed to short-term volatility, exacerbating the price decline.

Additionally, exchange data revealed that liquidation volumes were fairly evenly spread across multiple platforms, including Binance and OKX, suggesting a broad market reaction rather than a concentrated event.

Declining Active Addresses

Another important metric to consider is Solana’s daily active addresses. On January 20, Solana saw a peak of 6.5 million active addresses, but by April 2, that number had declined by 46% to just 3.5 million. Although activity has remained relatively stable above 2.5 million since March, the decline indicates a drop in sustained engagement. The activity spikes in January and March were likely driven by specific events or campaigns, rather than consistent growth, signaling that Solana’s market performance is still largely event-driven.

Looking Ahead: Consolidation Before a Potential Move

The combined data points to a few key trends in Solana’s current market behavior. Redistribution from the $147 range into lower price bands has reduced overhead resistance, while strengthening support below $144. This suggests that Solana may continue to trade within a range, consolidating as the market digests recent price movements.

For now, Solana appears to be range-bound below the $130 mark, waiting for a decisive trigger to move in either direction. Whether the support at $123 holds or the sell pressure intensifies will determine if Solana can make a break toward higher prices, or if it will face further downward movement. As the market digests these developments, traders will be watching closely for any signs of a breakout or breakdown.

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Sakamoto Nashi

Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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