Solana (SOL) long-term investors seem to be experiencing a psychological battle amid the volatility of the crypto market. Although SOL has broken out of a bullish inverted head and shoulders pattern, and the technical side seems to be showing signs of recovery, the underlying Net Unrealized Profit of Long-Term Holders (NUPL) indicator is sending a cautious signal, suggesting that market sentiment is still nervous.
NUPL indicates growing anxiety among long-term investors
Solana’s NUPL value continues to fluctuate between 0.4 and 0.6. Although some investors have begun to make profits, the lower limit of 0.4 reveals concerns about potential losses. This means that although the overall market has not entered a loss range, investors are clearly uneasy about future price movements.
As a tool to measure market sentiment, NUPL has been closely correlated with price changes many times. For example, on February 5, as the price of SOL fell, NUPL also fell sharply, and investor sentiment turned to anxiety and caution.
The tipping point between anxiety and optimism: SOL price reaction
This game of anxiety and optimism is closely linked to the price trend of SOL. Although the current price fluctuations have not fallen below the key support level, investor sentiment seems to be at a critical point, and the market's reaction may change significantly at any time.
From a technical perspective, SOL's inverted head and shoulders pattern seems to indicate a bullish reversal after the decline, and the price may rise by 6%, with a target of $180. This is undoubtedly an exciting signal for investors who still hold on to the market downturn. At this time, the neckline position of $173.81 before the breakout, which was once a resistance area for the price, has now become a key point for whether SOL can continue to rise.
Challenges after the breakout: Can SOL sustain its upward momentum?
If SOL can stabilize above $173.81, this breakthrough could become a catalyst for further price increases to $180, attracting more investors to re-enter the market and push up the price of SOL. However, if SOL fails to maintain this breakthrough and instead falls back to test the support level near $160, the original upward trend may be challenged.
Investors should remain cautious and wait for clearer signals
Despite the technical breakthrough signal, the sentiment of SOL long-term holders is still strong, and investors are faced with the choice of whether to stop loss or wait for a lower price to enter. The market environment at this time is still full of uncertainty. In the short term, any reversal signs may bring new trading opportunities, or vice versa, lead to deeper adjustments.
Stay alert and seize potential opportunities
Solana is currently at a critical technical turning point, and investors need to keep a close eye on further changes in NUPL and price action. If the breakout is sustained, this may be an opportunity to reposition, but if the price falls back, it would be wiser to remain cautious and wait for the right entry point.
