Solana is actively recovering from the losses incurred over the past three months. Recently, SOL has been gaining popularity thanks to long-term holders (LTH) who are supporting its growth.
Let’s figure out what is happening in the Solana (SOL) market and what to expect from the cryptocurrency's price in May 2025.
Solana investors can expect positive changes
Currently, Solana is in the 'Hope' zone according to the Net Unrealized Profit/Loss (NUPL) indicator. Historically, being in this zone has often preceded price increases, especially when the indicator approached the 'Optimism' zone at 0.25. Although Solana has not yet reached this level, the altcoin's price may rise in anticipation of further growth.
In addition to the strong NUPL signal, Solana is attracting significant interest from institutional investors. This strengthens positive sentiment in the market as more institutional investors increase their investments in Solana. Such confidence is likely to contribute to further price growth and strengthen Solana's position.
Recently, there has been a sharp increase in the change of net position of holders. This surge indicates growing accumulation by long-term holders (LTH), reflecting increased confidence in the asset.
The fact that LTH are increasingly holding their positions is a strong indicator of confidence in the future of Solana. This trend may help stabilize the price and support further growth, as LTH usually have a significant impact on market direction.
The price of SOL is on the path to growth
The price of Solana has increased by 41% this month, reaching $149 at the time of writing. The next significant resistance is at the $180 level. Breaking through this level will be an important step towards recovery from March losses. To reach $180, SOL needs to rise by 21.8%, which seems quite possible given the current momentum.
If Solana successfully surpasses the $180 mark, it will be well positioned to maintain growth. Further increases could help SOL recover losses from February, potentially raising the price to $221. However, this growth will likely be accompanied by market saturation, which will limit further immediate gains.
However, if investors decide to sell their assets prematurely, the price of Solana could drop significantly. The inability to surpass the resistance level of $180 threatens to lead to a decline—likely down to $123. This scenario would nullify the current bullish trend, signaling a potential reversal and halt to the recovery.
