Keeping Uptrend safe – here’s what’s next.

Solana's recent price action highlights his ongoing battle to secure $200 as a stable support level. The altcoin has been hovering around this key price point, reflecting broader market uncertainty.

However, changing market conditions suggest the possibility of a turnaround, paving the way for higher growth.

Solana Investors Profit Dip

Solana's net unrealized profit/loss (NUPL) is approaching the fear zone, indicating a sense of caution among investors. Historically, penetration into this zone is followed by a price recovery, as the market begins to stabilize. This trend suggests that Solana could face a similar rebound if unsecured profits continue their downward spiral.

Investor sentiment is critical in determining Solana's next price move. If NUPL enters the fear zone, it may create an opportunity for fresh buying activity, which will create optimism. This could be the impetus needed to push the altcoin back into the bullish trend.

Solana's macro momentum is showing signs of recovery. The Relative Strength Index (RSI) recently rebounded after nearing the oversold zone last month. While the RSI has yet to establish the neutral 50.0 line as support, the upward trend suggests building bullish sentiment that could intensify in the coming days.

The updated RSI is in line with the market indicators, which may lead to a reversal. If Solana continues to gain strength, it could strengthen investor confidence and lay the foundation for a sustained recovery above critical price levels.

SOL price forecast: recovery of support

Solana's price briefly breached the $201 resistance in early January, but fell 15% to the $183 support level. This pullback reflects volatility in the market, but provides a basis for recovery if key factors improve.

If the factors mentioned above continue to strengthen, Solana can recover $200 as a support level. Sustained momentum could push the price towards $221, effectively recovering recent losses and signaling the start of a stronger uptrend.

However, failure to breach the $201 resistance could result in a long-term consolidation above $183. If the altcoin loses this support, it risks a further fall to $169, reducing bearish sentiment and delaying recovery efforts. Such a situation highlights the challenges Solana faces.