Solana (SOL) is experiencing notable downward pressure, with its price retreating below the $200 mark.
The decline is primarily attributed to increased selling activity by long-term holders, combined with a significant drop in new investor engagement. Blockchain analytics indicate that the network’s ‘liveness’ metric has risen, reflecting this heightened selling pressure and contributing to a bearish market sentiment.
Adding to the negative momentum, the creation of new Solana addresses has declined sharply. Data shows a reduction of approximately 1.4 million new addresses within a recent 48-hour period, reaching a monthly low point.
SOL is currently trading near $187, below a critical resistance level at $188. Technical analysis suggests a breach below the $176 support level could trigger further substantial losses. Conversely, a recovery above $188 could potentially pave the way for a move back toward the $201 level.
Monitoring the balance of selling pressure and new capital inflows will be crucial for determining Solana’s near-term price trajectory.