In Brief
The value $SOL reached $216, the highest level in six months, even though SOL worth $432 million was placed on exchanges for profit.
Exchange balances and the sharp rise in the number of destroyed coins indicate that long-term holders are selling, which increases pressure on Solana's upward trend.
A breakout above $221 could enhance growth, while a failure could lead to SOL dropping below $201 and risk a decline to $189 or $175.
Solana surged to a six-month high, continuing a confident rise in the cryptocurrency market as a whole. The altcoin reached new levels, signaling renewed demand from investors.
However, the rise occurred amid resistance from one of the most influential investor groups, with significant selling recorded on exchanges during this price increase.
Solana stockholders have shifted to selling
Solana balances on exchanges have surged sharply over the past three days. More than 2 million SOL, worth over $432 million, have flowed onto exchanges. This trend reflects that investors took advantage of the rally, preferring to lock in profits rather than continue risking in an unstable environment.
The influx of investments underscores the short-term caution of stockholders, despite strong price dynamics. Such behavior is often observed during rapid upward trends when investors seek to realize profits before a possible correction. Increased selling pressure further limits Solana's ability to maintain momentum above recent resistance levels.
The Coin Destruction Indicator (CDD) has reached its highest value in three months, raising concerns about investor activity. This indicator tracks the movement of coins held by long-term holders, who have historically influenced the price formation of Solana through continuous accumulation or distribution.
The sharp rise in CDD indicates that these long-term investors are shifting from selling to holding. Their distribution significantly contributes to the growth of exchange balances. While Solana's stock price remains stable for now, continued selling from this group could pressure the market and undermine the sustainability of the current rally.
The price of SOL is doing well
At the time of writing, $SOL is trading at $215, just below the resistance level at $221. The latest spike brought the altcoin to a six-month high. Breaking through this level remains critically important for generating further momentum and confirming the continuation of the upward trend.
The Parabolic SAR indicator is below the candles, confirming the presence of an active upward trend. If Solana stock breaks the $221 mark and becomes support, the growth of SOL could accelerate. This movement would solidify the recent rise, despite selling pressure.
Scenarios are likely
If $SOL cannot withstand the current selling, the price may fall below the support level at $201. Further weakening could push the altcoin to $189 or even $175, negating the success of the rally. Such a drop would expose vulnerabilities in Solana's price structure and temporarily negate the short-term bullish sentiment.
I am holding a short position
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