Solana (SOL) is making significant efforts to recover from the losses of the past three months. Recently, this altcoin has gradually regained upward momentum, supported by long-term holders (LTH) participating in the recovery trend.
This backing has the potential to reinforce Solana's complete recovery roadmap in the coming month.
Solana investors have reasons to be optimistic
Currently, Solana is in the 'Hope' zone according to the Net Unrealized Profit/Loss (NUPL) indicator. Historically, whenever Solana enters this zone, the price tends to rise as the indicator approaches the 'Optimism' zone at the 0.25 mark. Although it is still quite far from this threshold, the price of SOL could continue to rise due to expectations of stronger growth momentum in the near future.
In addition to the positive signals from NUPL, Solana is also attracting significant interest from institutional investors. Increased investment from this group is further reinforcing positive market sentiment, creating a solid foundation for the current price increase and supporting Solana's long-term recovery process.
Recently, Canada approved the world's first spot Solana ETF— a significant step, especially since investors in the U.S. have long requested this. However, Chris Chung—CEO and co-founder of Titan believes the impact of the event is still limited.
"The approval of spot Solana ETFs by Canada is not enough to push the price of SOL up on its own, but it sends a clear signal that institutional investors are ready. Especially as the Ontario Securities Commission (OSC) approves staking—a long-debated issue. Now, the U.S. Securities and Exchange Commission (SEC) is almost certain to follow suit soon, and that will truly be a key factor attracting capital inflow."
Solana NUPL | Source: Glassnode
Therefore, Solana's macro momentum is also showing signs of improvement, with the net position change indicator of holders recently surging. This upward movement reflects a strengthening accumulation trend from LTH, indicating growing confidence in the asset's value. Active buying by LTH is a clear signal of trust in long-term price appreciation, and this altcoin is likely to benefit from the ongoing accumulation trend.
The sustained position of long-term holders (LTH) indicates strong confidence in Solana's future. This trend may contribute to price stability and support the next upward momentum, as LTH typically has a significant influence on market trends. As more investors hold SOL tokens, the foundation for sustainable upward trends is gradually being established.
Net position change of holders | Source: Glassnode
The price of SOL is on a strong upward trend
The price of SOL has increased by 20% this month, reaching $148 at the time of writing. The next important resistance level is at $180, and if this level is surpassed, SOL will recover significantly from the losses incurred in March. To reach $180, SOL needs to increase an additional 21.8%—a target that seems feasible with the current momentum.
If it successfully breaks the $180 mark, this coin will have a solid position to maintain upward momentum. Continued upward movement could help SOL offset the losses from February, with the potential to push the price up to $221. However, this upward trend is likely to encounter market saturation, limiting further gains in the short term.
SOL price chart | Source: TradingView
However, if investors decide to take profits too early, the price of SOL may face a significant drop. Failing to surpass the $180 resistance will lead to a price decline, with the possibility of SOL returning to $123. This scenario would invalidate the current upward trend, signaling a potential reversal and disrupting the recovery process.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.