Solana is currently experiencing an impressive uptrend, extending its rally that began in early August. This momentum has propelled the altcoin to a fresh seven-month high, creating buzz in the cryptocurrency community.
The recent rally has brought SOL prices to the crucial $250 mark. This level holds significant psychological weight among traders and investors, potentially influencing the next phase of Solana’s price action and determining the future momentum for the asset.
Solana Holders Move To Sell
Recently, the Liveliness indicator has seen a sharp uptick since the start of the month. This uptrend signals that long-term holders (LTHs) are actively moving their holdings, a trend that often suggests profit-taking as they look to capitalize on SOL‘s seven-month high.
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Historically, moments of profit-taking by influential cohorts create significant headwinds for Solana. Although the broader market sentiment remains bullish, sustained selling pressure from these long-term holders may undermine the ongoing rally. Such movements could lead to a potential rejection around the $250 threshold.
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Solana’s LTH Net Unrealized Profit and Loss (NUPL) provides a clearer view of the trend. While the activity indicates selling, the NUPL metric suggests that holders have not yet reached peak profit territory. Historical data shows that when NUPL rises above 0.6, heavier liquidations tend to follow.
Currently, the NUPL remains below this threshold, indicating that Solana retains room for further gains. This implies that while profit-taking is evident, the unrealized profits have not escalated sufficiently to trigger sharp reversals in SOL’s price.
SOL Price Is Pushing Upwards
As of now, Solana is trading around $246, inching closer to the $250 resistance mark. While there have been intra-day spikes that pushed SOL above this pivotal level, the altcoin needs strong support to achieve a sustained breakthrough beyond $250.
Should the selling pressure from LTHs escalate, SOL could experience an early reversal. A decline below $246 may lead to retracements towards $232. If bearish pressure intensifies, even further downside risks could see prices dipping to $214.
Conversely, if the selling from LTHs remains moderate until reaching a saturation point, Solana might extend its upward rally. A successful breach of the $250 resistance, especially with conviction, could set SOL on a trajectory towards $260, bolstered by strong market sentiment and renewed investor confidence.
