 ▲ Solana (SOL) © |
Despite strong ecosystem tailwinds and growing institutional interest, Solana (SOL) is facing heavy profit-taking from long-term holders, casting dark clouds over its prospects of breaking above the $100 mark.
According to crypto-focused outlet AMB Crypto on March 8 (local time), trading volume of tokenized gold surged by 290% from its previous peak amid rising tensions between the United States and Iran, setting a new record. The outlet analyzed that if the U.S. crypto market structure bill, known as the Clarity Act, is passed, Solana—with its fast and robust blockchain infrastructure—could absorb significant volumes in the tokenized real-world asset market, making it one of the biggest beneficiaries.
In fact, Solana has been building a solid long-term bullish foundation through increasing adoption in the payments sector and capital inflows into exchange-traded funds. However, these multi-year positive fundamentals have not been enough to fully reverse the harsh reality of the broader cryptocurrency bear market currently weighing on prices. On-chain data is instead warning of the possibility of deeper price declines.
The clearest bearish signal has emerged from the Coin Days Destroyed metric. This indicator, which tracks large movements of long-dormant coins, spiked sharply on March 5 as Solana’s price tested the $90 resistance level. At the same time, inflows to exchanges have increased significantly over the past month, suggesting that latent selling pressure triggered after the price collapsed below $100 in late January is gradually surfacing.
Furthermore, the HODLer net position change indicator, which reflects long-term holder behavior, has recently turned negative. This provides decisive evidence that long-term investors—who had been steadily accumulating Solana since last December—have finally begun cashing out to realize profits.
Experts say that, taken together, these on-chain indicators suggest that short-term momentum alone will likely be insufficient to break through the $100 resistance level. Despite strong fundamentals, investors appear to be using price rebounds as opportunities to take profits in the midst of a deep bear market, warranting caution against intensified selling pressure in the near term.
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