After weeks of persistent sell-off pressure, Solana (SOL) is now showing early signs of stabilization, offering a glimmer of hope for cryptocurrency traders and investors. Both on-chain data and technical factors indicate a cooling of selling momentum, though the broader trend remains under scrutiny. Can Solana reclaim its key resistance levels and spark a recovery rally?
On-Chain Data: Easing Selling Pressure
According to analytics from Glassnode, Solana’s realized profit/loss ratio has recently plummeted following a significant spike. This metric, which tracks whether SOL investors are offloading tokens at a profit or loss, signals that many early buyers have already exited, reducing immediate selling pressure. Historical trends suggest that such cooling periods can often mark the end of aggressive sell-offs but do not necessarily confirm an immediate bullish reversal.
This easing of investor activity may pave the way for consolidation. If spot demand stabilizes, Solana’s price could shift from its recent downward spiral to a more balanced trajectory.
Technical Indicators: Signs of Recovery
From a technical analysis perspective, Solana remains confined within a descending price channel that has guided its movements since late summer. Currently trading near the $139 mark, this figure aligns with key equilibrium zones suggested by Bollinger Bands.
Momentum indicators, such as the Relative Strength Index (RSI), also hint at stabilization. The RSI has risen from oversold conditions to a neutral stance at 48, often seen in markets gearing up for directional breakouts. Additionally, the compressing Bollinger Bands hint at reducing volatility, often a precursor to significant market moves.
Critical Levels to Watch
For any potential recovery to gain traction, Solana must reclaim the $145–$150 resistance zone. This area aligns with the upper Bollinger Band as well as the descending channel’s resistance boundary. A daily close above this level would signify a structural shift, potentially pushing the price toward $155 and even $170.
Conversely, failure to hold above the $135 support level could lead to continued downward movement, with the next critical support resting around $125.
Final Thoughts
While Solana’s sell-off appears to be losing steam, the road to recovery remains uncertain. Both on-chain and technical data support a narrative of reduced selling pressure and stabilization. However, any meaningful rally heading into 2026 will depend on SOL’s ability to break above pivotal resistance levels. Traders should keep a close eye on these numbers to capitalize on any emerging trends.
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