Solana Plummets: 75% of Supply Below Water Indicates Severe Capitulation
Solana's Market Struggles: Nearly 75% of Solana's circulating supply is currently at a loss, indicating significant selling pressure and a potential market bottom, contrasting with Bitcoin and Ethereum, which show less severe losses at around 35-38%.
Liquidation and Market Dynamics: November experienced $5.5 billion in liquidations, often a precursor to rebounds in undervalued tokens, highlighting the volatility and potential for recovery in the crypto market.
Investor Pain and Accumulation: The high percentage of unrealized losses across major cryptocurrencies suggests a capitulation phase, with long-term holders potentially accumulating at discounted prices as short-term holders face significant losses.
Future Outlook: On-chain metrics indicate that whale accumulation and dormancy breaks could signal a recovery, with the potential for Solana to experience a significant rally, while Bitcoin and Ethereum may lead the market upward as macroeconomic conditions improve.
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Technical Analysis for SOL
Technical Sentiment Analysis for Solana (SOL) As of , Solana (SOL) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 4 technical signals, shows that 1 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for SOL stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, SOL is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Solana (SOL) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 15.933 | 41.717 | 67.283 | 93.067 | 118.633 | 144.417 | 169.983 |
| Fibonacci | 41.717 | 61.332 | 73.451 | 93.067 | 112.682 | 124.801 | 144.417 |
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