The price of Solana (SOL) has risen nearly 25% over the week. The overall rally in the crypto market has returned optimism and interest to major altcoins.
SOL is trading near February highs, attracting the attention of traders and investors. However, on-chain data shows that not everyone is confident in the duration of this rally.
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Solana traders are hoping for growth:
SOL has shown double-digit growth over the past week and is currently trading around $198.43, approaching the important level of $206, which was last recorded in February. However, according to Glassnode data, the Net Unrealized Profit/Loss (NUPL) metric for SOL indicates a state of 'Optimism–Anxiety.'
The NUPL metric shows the difference between total unrealized profits and losses of all holders relative to the asset's market capitalization.
It helps to understand whether the market is generally in a state of profit or loss.
The market is in a phase of optimism–anxiety, where most investors are slightly in the black. They hope for a sustained rally but are unsure if it will happen.
While some investors await a breakout above $206, others doubt that this resistance can be overcome. This tension is already affecting the price dynamics.
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Solana is rising, but traders are starting to sell at the peak:
Despite the sharp price increase and high network activity, the BBTrend for SOL shows slight selling pressure.
In the last three days, the momentum indicator has formed three consecutively increasing red histogram bars. This means that selling pressure is increasing.
The BBTrend indicator assesses the strength and direction of the trend based on Bollinger Bands.
Red bars indicate that the price consistently closes near the lower band, signaling further decline. Despite the optimism, traders are starting to take profits.
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Solana price forecast:
Key range between $206 and $183
The resistance level of $206 plays a crucial role for SOL.
If buying pressure increases and SOL breaks through this threshold, wrapping it in strong support, the price could soar to $219.97.
If sales increase, SOL may lose some of its recent gains and return to support at $183.75.
