• $SOL fell by 14% over the week, but supply chain data shows that long-term holders are increasing their accumulation despite price weakness.

  • Key indicators such as activity and the change in the net position of holders point to a transition to long-term holding, signaling 'bullish' sentiments.

  • Since most short-term traders exit with losses, a decrease in selling pressure may help SOL stabilize near the support level at $158.

The popular altcoin Solana $SOL struggles to maintain an upward trend since reaching a cyclical peak of $206 on July 22. Just in the last week, the asset's value has decreased by 14%, reflecting a decline in confidence among short-term investors.

Long-term holders of Solana stocks are doubling down.

While short-term traders are liquidating their assets, long-term holders (DD) are returning to accumulation mode. This change in behavior is clearly demonstrated by Solana's activity metric, which has been steadily declining since July 25.

According to Glassnode, this indicator, tracking the movement of previously inactive tokens, fell to a weekly low of 0.76 yesterday, confirming a decrease in sales among LTH SOL.

Activity of SOL. Source: Glassnode

The activity tracks the movement of long-held tokens, calculating the ratio of destroyed coin-days to the total number of accumulated coin-days. An increase in this indicator suggests that more inactive tokens are being moved or sold, often indicating profit-taking by LTH.

Conversely, as with $SOL , when this indicator drops, it indicates that investors are withdrawing their assets from exchanges and prefer to hold them.

Moreover, since July 30, the change in the net position of holders (HODler Net Position Change) in SOL has shown steady growth. This confirms that more coins are moving into long-term storage despite the sluggish price dynamics of the asset.

Change in the net position of SOL holders. Source: Glassnode

Glassnode data shows that this metric, measuring the 30-day change in LTH supply, has risen by 102% over the past four days. Such growth in the metric indicates that LTH are accumulating more coins than they are selling.

Solana traders are selling at a loss — is a bottom finally forming?

As fewer holders are willing to sell their tokens at a loss, selling pressure may decrease, allowing #solana to find a local bottom ahead of any bullish catalyst that may trigger a rebound.

Solana hangs by a thread — support at $158 is undergoing serious testing.

At the time of publication, stocks #sol are trading at $161.43, holding above the key support level at $158.80. If buying pressure increases, SOL could trigger a bullish reversal and trend towards $176.33.

However, if sell-offs continue and the support level weakens, the price of SOL could drop to $145.90.