Solana has declined by around 13% in the past week, which has brought the asset back to a major on-chain support cluster. Could this be where the bleed ends? Solana Has Strong On-Chain Support Between $145 & $147 In a new post on X, the on-chain analytics firm Glassnode has talked about where support and resistance levels lie for Solana based on the Cost Basis Distribution (CBD) metric. Related Reading: These Altcoins Are Bucking The Trend—But Can They Keep It Up? The Cost Basis Distribution tells us about how much of the cryptocurrency’s circulating supply was last purchased or transferred at what spot price. Below is the chart shared by Glassnode that shows the data of the indicator for Solana over the past few months. As is visible, there are a few price zones near the current Solana spot price that stand out in terms of the amount of supply that they hold. The $155 to $157 range carries the cost basis of around 31 million tokens and the $164 to $166 range that of 29 million tokens. A third demand zone exists at $145 to $147, a region that the cryptocurrency’s price is currently making a retest of. Here, the investors last purchased a total of 13 million SOL. To any investor, their cost basis is an important level, so they are more likely to show some kind of move when a retest of it occurs. Generally, this type of reaction isn’t anything relevant for the asset when just a few holders share their acquisition mark at the level, but when a large amount of them are involved, like in the case of the range that SOL is retesting right now, a sizeable reaction can sometimes appear. Generally, these moves tend toward buying when the retest occurs from above. That is, when the investors were in the green prior to the retest. This happens because these holders might believe the price decline to be just a dip opportunity or they may simply want to protect their cost basis. Similarly, holders might panic sell when the retest happens from below. This could happen because underwater sellers can be desperate to get back into the green and once they do, they might fear that the rise is only temporary so they could push for the exit. As Solana is retesting the $145 to $147 range from above, it’s possible that buyers from this region could provide support to the asset and help cushion its fall. In the event that a turnaround does happen, the $155 to $157 resistance range could be of focus next. Related Reading: Bitcoin NVT Enters Reversal Zone: BTC Dangerously Overvalued? The analytics firm has also shared the CBD of another altcoin, Tron (TRX). As Glassnode explains, Cost Basis Distribution shows TRON found support in the $0.26–$0.27 range, where over 14B $TRX is held -marking the strongest cluster on the chart. Above that, the supply is relatively thin and most investor positioning remains below current price. SOL Price Solana is currently hanging right at the lower end of the support range as its price is floating around $145. Looks like the price of the coin has plunged during the last couple of days | Source: SOLUSDT on TradingView Featured image from Dall-E, Glassnode.com, chart from TradingView.com
On-chain data shows that investors on the Solana network participated in significant profit-taking ahead of the asset’s latest retrace. Solana Realized Profit Registered A Sharp Spike Yesterday According to data from the on-chain analytics firm Glassnode, the Realized Profit observed a huge spike for Solana recently. The “Realized Profit” here refers to an indicator that, as its name suggests, keeps track of the total amount of profit that the investors are ‘realizing’ through their selling. The metric works by going through the transfer history of each coin being sold on the blockchain to see what price it was transacted at prior to this. If this previous selling price for any coin was more than the current spot price, then that particular token’s sale is leading to profit realization. Related Reading: This Bitcoin Range The Next Key Resistance, Analytics Firm Says The Realized Profit takes the difference between the two prices to calculate the exact amount of profit involved in the transaction and sums it up for sales across the network. In the context of the current topic, the usual Realized Profit isn’t the metric of interest, but rather a derivative form known as the Realized Profit by Age. This indicator basically tells us about how the SOL profit-taking is distributed among the various coin age bands. An “age band” is a time-range within which coins part of the band were last moved. The 1-week to 1-month age band, for instance, refers to the part of the supply that was last involved in a transfer between one week and one month ago. Now, here is the chart shared by the analytics firm that shows the trend in the Solana Realized Profit by Age over the last few months: As is visible in the above graph, the aggregated Solana Realized Profit observed a huge spike on Monday following the recovery in the cryptocurrency’s price toward the $180 mark. The sharp rally in the coin came after United States President Donald Trump announced a Crypto Strategic Reserve that is going to include five digital assets, one of which is SOL. Related Reading: Crypto Liquidations Near $1 Billion As Bitcoin & Altcoins Bounce Back It would appear the investors were keen to cash in on this opportunity, as the SOL Realized Profit shot up to an hourly value of over $257 million, making the profit-taking event one of the largest in the last couple of months. Interestingly, as the chart displays, 99% of the aggregated profit realization (around $255 million) came from the 1-day to 1-week age band alone. This would suggest that the profit-taking spree was almost entirely due to investors who bought during last week’s dip, capitalizing on their quick gains. SOL Price Solana has crashed following the profit-taking selloff as its price has returned back to $136. Featured image from Shutterstock.com, Glassnode.com, chart from TradingView.com
Solana is facing mounting selling pressure, trading at its lowest level since September 2024 following yesterday’s market-wide correction. Extreme fear continues to grip the market as SOL fails to find strong support, with bears maintaining control since the cryptocurrency hit its all-time high back in January. Since then, Solana has retraced over 55%, leaving investors uncertain about its short-term prospects. Related Reading: XRP Breaks Down Below Key Demand – Analyst Expects A Drop To $1.65 The broader crypto market remains under pressure, with altcoins struggling to regain bullish momentum. Analysts warn that further declines could be on the horizon if SOL fails to hold key levels. Crypto expert Ali Martinez shared on-chain metrics on X, revealing that Solana’s transfer volume has plummeted dramatically. According to the data, Solana’s transfer volume has dropped from $1.99 billion in November 2024 to just $14.57 million today. This significant decline suggests a steep drop in network activity and interest, raising concerns about the current state of the Solana ecosystem. With bearish sentiment dominating the market and on-chain activity slowing, the coming days will be crucial for SOL. If bulls fail to defend key support levels, Solana could see further downside. However, a strong recovery in volume and price action could indicate renewed interest and potential for a reversal. Solana Struggles Below $150 as Bears Maintain Control Solana is facing significant selling pressure, struggling to break above the $150 mark as bears dominate price action. The broader market sell-off has taken a heavy toll on SOL, with meme coins experiencing some of the steepest declines. Solana, which previously benefited from the meme coin hype cycle, is now seeing a major pullback as speculation fades. Related Reading: Litecoin Trading Activity Increases Over The Past Month – Potential LTC ETF Draws Speculation The price action remains weak as Solana trades below key demand levels that once sustained its long-term bullish structure. Bulls have lost momentum, failing to establish a strong recovery, while bears continue to drag the entire market down. If SOL fails to hold above current demand levels, further downside could be expected in the short term. Martinez’s on-chain data highlights a troubling trend for Solana’s network activity. According to Glassnode, Solana’s transfer volume has plummeted from $1.99 billion in November 2024 to just $14.57 million today. This dramatic drop indicates a sharp decline in network usage and trading activity, further reflecting the cooling-off period in meme coin speculation. The coming days will be critical for Solana. If SOL can hold above key demand levels, a recovery phase could begin. However, continued weakness in volume and price action could lead to further declines, making it essential for bulls to reclaim momentum soon. Price Struggles At $140 Amid Selling Pressure Solana (SOL) is trading at $141 after experiencing days of intense selling pressure, struggling more than most altcoins in the current market downturn. The broader crypto market has faced extreme volatility, with many assets seeing sharp declines. However, Solana remains one of the worst-hit, failing to establish strong support or momentum for a potential rebound. If bulls can defend the $140 level, there is a chance for a short-term recovery. Holding above this crucial demand zone could provide the foundation for a push back above key resistance levels. However, sentiment remains weak, and any further downside in Bitcoin or the broader market could send SOL into deeper corrections. Related Reading: Cardano Remains In Consolidation – Expert Projects 25% Price Move If Solana fails to maintain its current support, the next critical level to watch is $130, where buyers may attempt to step in again. However, a sustained breakdown below this mark would increase the risk of further declines into lower demand zones. The coming days will be crucial for Solana’s price action, as investors wait to see whether bulls can reclaim momentum or if bears will continue to drive the price downward. Featured image from Dall-E, chart from TradingView