Solana has faced significant price corrections recently, erasing gains made in mid-March. The altcoin is currently trading at $116, reflecting a 19% loss over the past ten days.
As the price continues to struggle, many investors are losing patience, pushing them to sell their holdings and exit the market.
Solana Losses Mount
The Realized Profit/Loss (RPL) indicator shows that Solana has been underperforming for most of February and March. While there were brief moments of profit for short-term holders (STHs), the overall trend has been bearish.
These losses have contributed to mounting frustration among investors, leading many to consider selling their positions. The selling pressure is keeping the market from recovering as more and more investors choose to cut their losses.
As a result, investor sentiment has weakened, with many unwilling to hold onto their positions in the face of continued price declines. The Realized Profit/Loss data indicates that, in addition to the selling pressure from STHs, the broader market is also showing signs of caution.
The Chaikin Money Flow (CMF) indicator also shows a concerning trend for Solana. Currently, at a monthly low, the CMF reflects that outflows are exceeding inflows, indicating that investors are pulling their money out of Solana. This lack of buying pressure is detrimental to the altcoin’s recovery prospects, as the outflows signal reduced confidence in the asset.
With the CMF in negative territory, Solana’s ability to rally appears limited, as the overall market sentiment remains subdued. The lack of investor conviction is further exacerbating the downward momentum.
SOL Price Could Witness Further Decline
At the time of writing, Solana’s price is at $116, and it is struggling to recover from the recent losses. Despite the slight uptick observed in the past 24 hours, the altcoin’s recovery remains uncertain. With investor confidence at a low, the price may continue to struggle in the short term.
The aforementioned factors suggest that Solana could dip further to $109, extending investors’ losses. If the bearish trend continues, SOL could test this support level before any potential signs of recovery emerge. This price action would keep investors on edge and delay any sustained rally.
However, if Solana can reclaim $118 as a support floor, it could spark a reversal. A breach of this level would push the altcoin toward $123, and flipping it into support would significantly bolster the bullish thesis. In this scenario, Solana could break through resistance levels and rise toward $135.
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