Solana is struggling to recover after its recent price drop, with SOL remaining trapped below the $130 resistance. The altcoin shows signs of stabilization, but momentum remains fragile.
While new capital inflows guided previous rallies, this time the direction of movement seems to depend more on the actions of existing Solana investors rather than new entrants to the market.
Solana Investors Show Resistance
Chain data indicates the first signals of recovery. The Chaikin Money Flow has recorded a sharp rise in the last few days. Although the index remains below the zero line, the upward movement suggests that capital outflows are slowing down.
This change is critical for Solana's recovery scenario. Decreasing exits are often signs of a transition to new entries. As soon as buying pressure surpasses sales, the SOL price may react quickly. If stability is achieved on the CMF side, it indicates that confidence has returned among current investors.
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Macro indicators present a more cautious picture. The number of new addresses opened on the Solana network has recently experienced a sharp decline. The number of new addresses fell from 6,077 million to 5,390 million, decreasing by 11.3% in ten days.
This decrease in network participation indicates that speculative appetite is weakening. New investors prefer to remain cautious due to limited short-term incentives. As a result of the lack of fresh demand, the support of current investors becomes much more critical for price stability and a potential recovery.
Solana is trading at $126 while preparing the text and is moving below the $130 resistance. Price movements indicate a clear price stagnation rather than an upward explosion. The first target for SOL is to reclaim the $130 resistance. Breaking through this barrier suggests that momentum could turn in the short term.
Decreasing exits may increase the chance of recovery. If current investors maintain their positions and capital inflows begin, buying pressure could push SOL back up to the $130 level. However, for this level to be permanently surpassed, stable demand is required rather than short-term speculative movements.
If investor sentiment deteriorates, downside risks remain on the table. Renewed selling pressure could pull Solana back below the support of $123. The next risky level upon losing this support would be $118. If this support is lost, the upward outlook becomes invalidated, and weakness deepens in the short term.
