🚨 Solana Plunges — Is This the Final Dip Before Support Kicks In?
There are a few pricing zones around the current Solana spot price that stand out because they contain a lot of supply. The $155 to $157 range has a cost basis of around 31 million tokens, whereas the $164 to $166 range has a cost base of 29 million tokens.
There is a third demand zone between $145 and $147, which is where the price of the cryptocurrency is now testing. The last time these investors bought SOL, they bought 13 million of them.
Their cost basis is an essential level for every investor, therefore they are more inclined to make a move when it is retested. This kind of response isn't usually important for the asset when just a few holders share their acquisition mark at the level. However, when a lot of them are engaged, such in the case of the range that SOL is retesting right now, a big reaction may sometimes happen.
When the retest happens from above, these movements usually lead to purchasing. That is, when the investors were making money before the retest. This arises because these holders could think the price drop is merely a chance to buy low, or they might just wish to safeguard their cost base.
In the same way, holders can panic sell when the retest comes from below. This might happen because sellers who are underwater may be anxious to get back into the green. Once they do, they may worry that the gain is just temporary and rush for the exit.
As Solana tests the $145 to $147 level from above again, buyers in this area could be able to aid the asset and slow down its slide. If there is a reversal, the $155 to $157 resistance zone might be the next thing to look at.
