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Key Takeaways:
- Solana long-term holders increased accumulation by 102% since July 30.
- Realized losses signal capitulation, often a bottoming indicator.
- RSI and OBV suggest seller fatigue and potential for a rebound.
While Solana’s (SOL) price has slipped below $165, long-term holders are demonstrating remarkable conviction. According to Glassnode, the Holder Net Position Change surged by 102% since July 30. This metric, which tracks the 30-day net change in long-term holder wallets, shows a clear trend of accumulation—suggesting experienced investors are using the price dip to increase their holdings rather than flee.
The behavior contrasts sharply with short-term market sentiment. Instead of panic-selling, long-term participants are steadily moving coins into cold storage, reinforcing the idea that current price levels are seen as an opportunity rather than a risk.
Signs of Capitulation Suggest the Worst May Be Over
Another key metric reinforces this view: the Realized Profit/Loss Ratio for SOL dropped to just 0.15 on August 2, its lowest in the past month. This indicates that most recent sellers locked in losses—typically a hallmark of capitulation.
Historically, such capitulation phases tend to occur near market bottoms. When sellers exit at steep losses and holding coins becomes less appealing for speculators, downside momentum often fades. The combination of reduced sell pressure and strategic accumulation often sets the stage for stabilization or even reversal.
Momentum Slows, Rebound Still Possible
Technicals further support the idea of buyer interest returning. Solana’s daily chart shows signs of exhaustion among sellers. The Relative Strength Index (RSI) has dropped to 41.65—approaching oversold levels—while On-Balance Volume (OBV) has flattened, indicating that the wave of selling may be slowing.
Although SOL is still struggling to break above key resistance zones, the shift in both sentiment and on-chain behavior suggests a potential turning point could be forming.
Cautious Optimism for Solana Bulls
While it’s too early to declare a full recovery, the data points to a possible bottoming structure forming for Solana. Long-term holders are doubling down, selling pressure is waning, and on-chain metrics hint that the worst may already be behind. If history repeats, SOL could soon find firmer footing.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Solana Price Drops 12% as Whale Sell-Off Sparks Bearish Momentum
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
