Solana is struggling in its recovery process after the recent price drop, with SOL continuing to be held below the resistance level of 130 USD. Although there have been some signals attempting to stabilize, the upward momentum remains quite weak.
Unlike previous rallies driven by new capital inflows, this time Solana's recovery ability depends much more on investors holding the token, rather than new market participants.
Some Solana holders are demonstrating resilience.
On-chain data shows early signs of stabilization. The Chaikin Money Flow indicator has risen sharply in recent days. Although this indicator remains below 0, the upward trend indicates that the rate of outflows is slowing down.
This development is very important for the recovery outlook of Solana. As outflows decrease, the potential for inflows will emerge. If buying pressure exceeds selling pressure, the price of SOL could quickly rise again. If the CMF remains positive, this will indicate that the confidence of current investors is gradually returning.
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Overall indicators present a more cautious perspective. The number of new Solana addresses has sharply declined in recent sessions. Specifically, from 6.077 million addresses down to 5.390 million, a decrease of 11.3% in just 10 days.
A decrease in network users indicates that speculative interest is waning. New investors appear to be more hesitant to participate due to a lack of attractive short-term incentives. The lack of new participation makes the role of current investors even more crucial in maintaining price stability and creating recovery momentum.
Solana is trading around 126 USD at the time of writing, still below the resistance level of 130 USD. Currently, the price of SOL is mostly moving sideways rather than breaking out clearly. The immediate goal for SOL is to surpass the 130 USD mark to regain short-term momentum.
Decreased outflows enhance the recovery potential for SOL. If current investors continue to accumulate and inflows appear, strong buying pressure could push the price back up to the 130 USD range. However, to sustainably exceed this threshold, SOL needs stable support rather than just short-term speculative waves.
The risk of a correction remains if market sentiment worsens. If selling pressure resumes strongly, it could push Solana below the support level of 123 USD. If this level is broken, the price could drop to 118 USD. Losing this support, the short-term upward trend of SOL would be negated, and further downward pressure may emerge.
