Solana’s price rally depends on existing SOL owners, not buyers.
Solana has struggled to recover after a recent price decline, with SOL closing below the $130 resistance. The altcoin has shown attempts to stabilize, but momentum is weak.
Unlike previous rallies with new revenue streams, the next move appears to be based on existing Solana owners rather than new market revenues.
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Some owners of Solana show resistance
Data on the chain shows early signs of stabilization. Chaikin's cash flow has seen a significant increase in the past few days. Although the indicator remains below the zero line, the upward movement indicates that the flow of capital is decreasing.
This change is critical to Solana's recovery outlook. A reduction in outflows often precedes a shift in inflows. Once the pressure is greater than selling, the price of SOL can react quickly. Continued improvement in CMF shows that it will restore confidence among existing owners.
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Macro indicators present a more nuanced picture. The number of new Solana addresses has dropped significantly in recent sessions. New addresses fell from 6.077 million to 5.390 million, down 11.3% in ten days.
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Falling network participation indicates weak speculative demand. New investors hesitate citing limited short-term incentives. This lack of fresh demand gives existing owners more leverage to support price stability and any recovery attempts.
The value of SOL can be recovered
Solana is trading around $126 at the time of writing, staying below the $130 resistance level. Price action shows consolidation rather than loss. SOL's latest goal is to recover $130, which indicates a short-term momentum change.
A reduction in outflow improves the likelihood of recovery. If current holders continue to accumulate and inflows emerge, buying pressure could push SOL to $130. Sustained action beyond this level requires consistent support rather than brief speculative cues.
If the mood is disturbed, the side effects will continue. Renewed selling could push Solanna below the $123 support. A break at that level could expose $118 as the next lower target. Losing this support can eliminate bullish attitudes and reinforce short-term weakness.
