Solana Long-Term Holders Are Buying the Dip – Will Price Rebound?

Solana faces a 25% price decline, but long-term holders are quietly accumulating, suggesting a potential market recovery amid short-term volatility.

Despite a 25% decline since its July 22 cycle high of $206, Solana shows promising signs of a potential market recovery, with long-term holders quietly accumulating amid short-term volatility.

The cryptocurrency market is witnessing a fascinating divergence in Solana's trading dynamics. While short-term traders have been offloading their holdings, long-term investors are displaying a remarkably different strategy. On-chain data reveals a nuanced market landscape that suggests potential for a near-term recovery.

Solana HODL Stands Strong

Solana's Liveliness metric has plunged to a weekly low of 0.76, providing critical insight into market sentiment. This metric, which tracks the movement of previously dormant tokens, indicates a significant reduction in sell-offs by long-term holders.

When the Liveliness metric falls, it suggests that investors are choosing to hold rather than sell, often a sign of underlying confidence in the asset's long-term potential.

The Hodler Net Position Change provides further compelling evidence of accumulation. Over the past four days, this metric has climbed an impressive 102%, confirming that long-term holders are actively moving coins into storage despite the asset's challenging price action.

The Realized Profit/Loss Ratio closed at a 30-day low of 0.15 on August 2, indicating that many traders are exiting positions at a loss. Historically, such market conditions often precede a stabilization phase. With fewer holders willing to offload tokens below their cost basis, selling pressure may diminish.

Chart by TradingView

Currently trading at $163, Solana finds itself at a critical juncture. The asset hovers above a key support level at $150, with two primary scenarios emerging: a potential bullish reversal toward $200 or a continued downward trajectory that might push the price to $145.

Looking Ahead: The quiet accumulation by long-term investors provides a hope for a potential price recovery.