In recent days, Solana (SOL) has experienced a dramatic sell-off, with a reported $3.55 billion worth of tokens dumped by long-term holders. This marks a substantial decline of 11.56% over the past week, fueled by bearish market sentiment. Analysts note that the trend of long-term holders selling their assets has intensified, raising concerns about potential further declines in SOL's value.
Notwithstanding the panic selling, there are signs that accumulation is on the rise, which could provide some cushion for SOL. Data from Coin Days Destroyed (CDD) indicates that significant movements from long-term holders typically predict selling, as they often act after long periods of inactivity. This recent sell-off is the third-largest CDD event for SOL, following two larger sell-offs earlier in the year.
Interestingly, Solana has been able to maintain a relatively stable presence in the market despite the considerable selling pressure. This stability can be attributed to bullish activities from both spot and derivative market traders. Recent analyses show a notable outflow of SOL from exchanges into private wallets, suggesting that many investors are opting for long-term holds. In just the last 48 hours, over $12 million in SOL has been purchased and transferred, contributing to a total of $71.70 million for the week.
Further analysis of derivative trading indicates a positive shift, with the OI-Weighted Funding Rate reflecting increasing confidence among traders who are betting on a price rebound. Tools like the Bollinger Band Indicator also show that SOL is touching the lower support levels. Historically, when SOL has traded at similar levels, it has seen substantial gains, raising hopes for another rally to the $180–$200 range.
Notwithstanding the panic selling, there are signs that accumulation is on the rise, which could provide some cushion for SOL. Data from Coin Days Destroyed (CDD) indicates that significant movements from long-term holders typically predict selling, as they often act after long periods of inactivity. This recent sell-off is the third-largest CDD event for SOL, following two larger sell-offs earlier in the year.
Interestingly, Solana has been able to maintain a relatively stable presence in the market despite the considerable selling pressure. This stability can be attributed to bullish activities from both spot and derivative market traders. Recent analyses show a notable outflow of SOL from exchanges into private wallets, suggesting that many investors are opting for long-term holds. In just the last 48 hours, over $12 million in SOL has been purchased and transferred, contributing to a total of $71.70 million for the week.
Further analysis of derivative trading indicates a positive shift, with the OI-Weighted Funding Rate reflecting increasing confidence among traders who are betting on a price rebound. Tools like the Bollinger Band Indicator also show that SOL is touching the lower support levels. Historically, when SOL has traded at similar levels, it has seen substantial gains, raising hopes for another rally to the $180–$200 range.
