Here Are Key Supply and Distribution Zones for Solana Price Since ATH

Key Insights:

• Solana price shows consistent price growth, driven by stable buying trends and key support levels.
• Significant resistance points at higher levels could lead to increased selling pressure.
• Derivatives market sees a decrease in volume, with liquidation data indicating upward pressure.

Solana price is experiencing a notable price recovery, alongside the broader cryptocurrency market, after the U.S. Securities and Exchange Commission (SEC) dropped its lawsuit against Ripple.

In the past 24 hours, Solana has demonstrated a consistent upward trend, with its price rising from just below $122 to over $132. This increase highlights a stable buying pattern, suggesting investor confidence in the current market.

Solana Price Movement and Key Support Levels

Recent price data indicates a steady rise for Solana, reflecting an overall market improvement. Over the last 24 hours, the price surged by 6.46%, and it also saw a 6.85% increase over the past week. Notably, Solana’s price action has displayed a smooth upward trajectory, signaling that the cryptocurrency is experiencing a stable buying trend. This consistency is evident in the lack of sudden price drops or volatility.

Glassnode’s data on Solana’s Unspent Realized Price Distribution (URPD) chart reveals key areas of price concentration where $SOL supply is focused.

A significant level of interest is at $112.10, where 9.7 million SOL, accounting for 1.67% of the supply, is concentrated. This level held 4 million SOL on January 19, suggesting that long-term investors may have added to their positions, which could provide strong support.

Additional support is found between $94 and $100, where nearly 21 million SOL is concentrated. However, if the price dips below these levels, downside risk may increase, as there is little supply between $94 and $56. Notably, the lack of volume in this range could result in significant price movement if the support levels fail.

Solana’s Resistance Levels and Market Activity

Solana’s price faces notable resistance at $135, where 26.6 million SOL is concentrated. A more significant resistance point lies at $144, where 27 million SOL, nearly 5% of the supply, is held. This price point has been a critical level since January 19 when it held 20.6 million SOL. As many investors may look to break even at this price, there is a potential for increased selling pressure, making it a key hurdle for Solana’s future price movements.

Meanwhile, Solana’s derivatives market also shows some shifts in trading activity. Volume in Solana derivatives has decreased by 4.66%, reaching a total of $6.28 billion, signaling a slight drop in trading activity.

Open interest, the total value of outstanding contracts, has also decreased by 0.40%, now standing at $3.86 billion. This decline suggests that traders are either closing positions or adopting a more cautious approach in light of the market’s uncertainty.

Liquidation Data and Market Sentiment

Many investors on Solana lost their positions due to market movements during these periods. Short traders were hit hardest when total position liquidations totalled $10.08 million during the last hour. Over the last 12 hours, $15.47 million was liquidated, with $14.49 million coming from shorts. Market prices tend to rise when short sellers need to buy back their bets against Solana.

Short seller exposure remained intense since the market kept rising. Short traders were liquidated $13.31 million in the last 4 hours and made up most of these liquidations. During the last 24 hours longs made up just $1.26 million of total $17.79 million in liquidations. The large volume of position eliminated on short strategies enhances Solana’s market direction.

Solana Price Technical End

Technical analysis tools for Solana show conflicting market trends. The Relative Strength Index sits at 43.29, which is under the midpoint 50 and shows weak bullish or neutral market movement. The relative strength index has dropped from its previous peaks showing that the upward market movement has weakened.

Elsewhere, the Moving Average Convergence Divergence (MACD) also shows bearish momentum, with the MACD line at 1.92 and the signal line at -12.98. The Moving Average Convergence Divergence indicator creates a buy opportunity but market conditions point to a downward direction.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.