Solana is making significant efforts to recover from the losses it has sustained over the past three months. Recently, the altcoin has been gaining momentum, thanks to support from long-term holders (LTH) who have joined the rally.
This support is likely to strengthen Solana's path to full recovery next month.
Solana Investors Have Something to Look Forward To
Currently, Solana is in the 'Hope' zone according to the NUPL (Net Unrealized Profit/Loss) indicator. Historically, when Solana entered this zone, it often preceded a price increase, with the price rising as the indicator approached the 'Optimism' zone at 0.25. Although Solana is still far from this threshold, the altcoin's price may rise in anticipation of further bullish momentum.
In addition to the strong NUPL signal, Solana is experiencing significant interest from institutional investors. This interest further reinforces the positive market sentiment, as more institutional investors increase their exposure to Solana. This institutional confidence is likely to contribute to further positive price movement and strengthen Solana's recovery.
Recently, Canada approved the world's first spot ETF on SOL, which is an important event considering that U.S. investors have long been requesting the same. However, Chris Chung, CEO and co-founder of Titan, expressed during a discussion with BeInCrypto that their influence is weak.
Thus, the macroeconomic momentum of Solana is also showing signs of improvement, as the change in the HODLer net position has recently increased. This increase indicates a rise in accumulation from long-term holders (LTH), suggesting growing confidence in the asset. LTH accumulation signals confidence in the long-term price growth of Solana, and the altcoin is likely to benefit from this ongoing accumulation.
The fact that LTH are increasingly holding their positions is a strong indicator of confidence in Solana's future. This trend may help stabilize the price and support further growth, as LTH typically have a significant impact on market direction. With an increasing number of investors holding their SOL tokens, the foundation for sustainable growth is being laid. The price of SOL is on its way to growth.
The price of Solana has increased by 41% this month, reaching $149 at the time of writing. The next significant resistance level is $180, and overcoming this level would mean a substantial recovery from the losses incurred in March. To reach $180, SOL needs to rise by 21.8%, which seems achievable given the current momentum.
If Solana successfully overcomes $180, it will be well positioned to sustain its bullish momentum. Further growth could help SOL recover losses from February, potentially pushing the price up to $221. However, this price increase is likely to be accompanied by some market saturation, limiting further immediate gains. However, if investors decide to sell their assets prematurely, Solana's price could take a significant hit. Failure to overcome the resistance level at $180 could lead to a decline, possibly down to $123. This scenario would nullify the current bullish thesis, signaling a potential reversal and halt to the recovery.#BinanceSquare #Write2Earn #Squar2earn #Binance #solana $SOL