Solana (SOL) is facing a significant challenge after a failed attempt to maintain its price above the $200 mark. After a brief surge, the altcoin has been unable to sustain its momentum, and its price is now on a downward trajectory due to weakening market conditions and changing investor behavior.
A key indicator of this bearish shift is the Liveliness metric, which has spiked over the last 12 days to a monthly high. This metric tracks the activity of long-term holders (LTHs), and its increase suggests that a wave of these investors are selling off their holdings. Given the significant influence LTHs have on price action, this sell-off is contributing to the downward pressure on Solana's price.
Adding to the negative sentiment is a decline in new investor interest. The number of new addresses has fallen to a monthly low, with a significant drop of 1.4 million new addresses in the past 48 hours. This lack of new money entering the Solana ecosystem suggests a waning appeal for the asset, which could prolong the current downtrend.
With Solana currently trading around $187, it sits just below a key resistance level of $188. The combination of LTHs selling and a lack of new investors makes it vulnerable to further price drops. If the selling pressure continues to intensify, the price could fall below the support level of $176, confirming the bearish sentiment. However, a favorable shift in broader market conditions could provide an opportunity for a recovery. If Solana can reclaim $188 as support, it might have a chance to retest the $201 level and make another attempt to hold above $200.
July 2025, Cryptoniteuae