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Solana (SOL) has plummeted by 28% in the past 24 hours, reaching $128 amid broader market weakness. Long-term holders are seeing mounting losses, with the Long-Term Holder Net Unrealized Profit/Loss (LTH NUPL) indicator signaling fear. With Solana’s price closely tied to Bitcoin, its future trajectory remains uncertain.
Solana’s Market Struggles Deepen
SOL’s downward momentum has intensified over the past few months, exacerbated by technical indicators that suggest a challenging recovery. The latest plunge has raised concerns among investors, with many questioning whether Solana can stabilize or if further declines are imminent.
The LTH NUPL indicator, which reflects the profitability of long-term investors, has now entered the fear zone. This suggests that more investors are holding at a loss, which could fuel additional selling pressure. If market sentiment does not improve, confidence in Solana may weaken further, leading to continued price declines.
Solana’s Strong Correlation with Bitcoin
Glassnode data shows that Solana maintains a strong correlation with Bitcoin, currently at 0.92. While a high correlation often signals strength, in this case, it reflects SOL’s dependence on Bitcoin’s price action. Bitcoin’s struggle to hold the $80,000 level has contributed to Solana’s losses, and if BTC weakens further, SOL could face additional downside risk.
According to CoinGecko, Solana’s steep 28% decline has brought its price to $128. The drop follows a death cross formation on SOL’s chart, a bearish technical signal that indicates potential for further declines. If Solana fails to hold above the $120 support level, losses may accelerate. However, a successful defense of this key level could stabilize the price and prevent deeper losses.
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