Solana (SOL) is experiencing tough times: the altcoin's price is struggling to recover despite attempts to break through resistance levels.
Let's explore what is happening in the Solana (SOL) market and what to expect from the cryptocurrency's price.
Solana investors continue to accumulate
Market sentiment around Solana remains positive. Changes in net positions on exchanges show that investors continue to accumulate the asset. Over the past three months, sales have only exceeded accumulation once.
This trend highlights a change in investor behavior, preferring to hold their positions. This indicates confidence in Solana's long-term prospects and suggests the possibility of SOL recovering as market conditions improve.
The overall macroeconomic situation for Solana looks promising, as the Network Value to Transactions (NVT) ratio is decreasing. This indicates that the network's value aligns with transaction activity — meaning the asset is not overheated.
The decline in Solana's NVT ratio may help the asset recover from recent losses. A low NVT ratio typically indicates growth potential, as it reflects a balance between network value and user activity.
The price of Solana is expected to recover
The price of Solana at the time of writing is holding at $146, remaining above critical support at $144. This support prevented a sharp decline in June. Holding above $144 indicates that SOL has some bullish momentum despite market difficulties.
Bullish signals from Solana indicate potential growth. If SOL bounces off the support at $144, it may aim for resistance at $152 and further to $161.
However, if the bullish momentum weakens and bearish pressure increases, Solana may fall below the support level of $144. In this case, the price risks dropping to $136, which would nullify the bullish forecast.
