Despite the recent drop in Solana's price, long-term holders are still doubling down. Data indicates that SOL may be close to a local bottom.
The trend of Solana [SOL] may be declining, but long-term holders clearly remain unfazed. They are not panicking and continue to accumulate with confidence.
With most sellers recently locking in losses, the worst may be over.
As prices drop, long-term holders are accumulating.
The recent price drop of Solana has not frightened its long-term holders.
In contrast, Glassnode data shows that since July 30, the net position change of Hodlers has surged by 102%, indicating that experienced investors are confident.
This indicator reflects the net change in holdings of long-term participants over 30 days.
Naturally, such surges often herald an accumulation. Despite the price drop, an increasing number of cryptocurrencies are entering cold wallets, suggesting strategic holding rather than panic selling.
Surrender zone in sight
SOL's realized profit and loss ratio plummeted to 0.15 on August 2, the lowest level in 30 days.
The data shows that most sellers have recently exited at a loss. Historically, such capitulation selling typically occurs near the cycle bottom.
As the holders willing to sell stocks at low prices decrease, downward pressure may ease.
If past patterns hold, this could signal the final phase of the decline, laying the groundwork for SOL's stabilization and eventual rebound under reduced selling pressure.
Momentum is slowing, but buyers are watching.
After a series of dismal declines, SOL is finally showing signs of recovery.
Although the asset struggles below $165, the latest daily chart suggests a potential pause. The RSI is at 41.65, close to the oversold area, indicating that downward momentum may soon be exhausted.
Meanwhile, the OBV has stabilized after a steady decline, indicating that sales volume is losing momentum.
While it is still too early to call a reversal, the charts show that sellers are fatigued, and a shift in sentiment may soon open the door for a rebound.
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