Solana (SOL) recently dropped below the $165 mark, triggering panic among short-term traders. However, behind the scenes, seasoned investors are showing no signs of fear. Instead of rushing to exit, long-term holders are actively accumulating more SOL, suggesting growing confidence in a longer-term rebound.According to on-chain data from Glassnode, the Hodler Net Position Change for Solana has surged by 102% since July 30. This metric measures the 30-day net change in holdings by long-term participants, and such spikes are typically associated with accumulation behavior. Despite the declining price action, more SOL is being moved into cold storage, reflecting a strategic shift rather than panic selling.
Capitulation Signs Suggest a Bottom May Be Near
Further supporting the bullish case, Solana’s Realized Profit/Loss Ratio plunged to 0.15 on August 2—its lowest point in over 30 days. This ratio indicates that the most recent sellers exited their positions at a loss, a signal often linked to capitulation.
Historically, these types of sell-offs happen near cycle bottoms. When losses dominate profit-taking, it often suggests that weak hands have been shaken out and that downward pressure may be nearing exhaustion. This environment sets the stage for potential stabilization and eventual price recovery.
Momentum Slows, Signs of Recovery Emerge
Despite the turbulence, Solana is showing early signs of a potential turnaround. On the daily chart, the most recent candle suggests that bearish momentum may be losing steam. The Relative Strength Index (RSI) sits at 41.65, approaching the oversold territory, hinting that a reversal could be on the horizon if buying picks up.
Additionally, the On-Balance Volume (OBV), a key indicator of volume momentum, has flattened after a prolonged decline. This flattening suggests that the selling volume is tapering off, giving bulls a chance to regroup and possibly regain control.
Although it is premature to call a full recovery, the data shows that sellers are becoming fatigued. If buying interest increases in the coming days, Solana may soon find a solid support base and reverse its downtrend.
Outlook: Accumulation Continues Amid Weak Hands Shaking Out
While the price of SOL remains volatile, long-term on-chain trends are pointing toward a different narrative—one of resilience and strategic accumulation. With capitulation metrics flashing and holders doubling down, the foundation for a recovery may already be forming.
Solana's path forward will likely depend on broader market sentiment and continued confidence from long-term investors. If historical trends hold, this recent dip may one day be seen as a prime accumulation zone.
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