Solana's price dropped below $200, showing weakness amidst bearish market signals. Investors are cautious, focusing on securing profits as skepticism increases about its recovery potential. The lack of momentum has left Solana vulnerable.
The Net Unrealized Profit/Loss (NUPL) metric indicates that investors remain optimistic, holding onto profits. Historically, this scenario often leads to stagnation, reducing the chances of sharp declines or substantial rallies. The market is cautious, waiting for stronger recovery signals.
Positive signs come from the Chaikin Money Flow (CMF) indicator, indicating increased inflows into Solana, supporting recovery. Sustained momentum requires these inflows to persist and align with market conditions favoring growth.
Solana's price fell 11% in 24 hours but held above $186 support. If Solana breaches the $201 resistance level, recovery could follow, although stronger momentum and improved market conditions are needed to reach its all-time high (ATH) of $264.
If bearish cues persist, Solana risks dropping below $186, leading to further declines and increasing investor concerns.
