Solana holders return to Accumulation – Is a recovery phase near?

In recent weeks, Solana (SOL) has faced difficulties in maintaining momentum and its value has not shown a significant recovery.

However, this altcoin is starting to show signs of stabilization as long-term investors (LTH) demonstrate stronger support. This change could open up bullish prospects if the current trend continues.

Solana Holder Shifts to Accumulation

The HODLer Net Position Change ( of Solana has maintained a positive trend over the past four days, with consecutive green bars, reflecting that long-term investors )LTH( are continuing to accumulate SOL. This is the longest accumulation streak in over six months, demonstrating the strong confidence of these investors.

![])https://img.gateio.im/social/moments-ecdbd430126e0dc47788b9336ae2ce57(Change in net position of Solana HODLers | Source: GlassnodeAs the LTH group continues to increase its position, Solana could build a solid foundation for future price recovery.

With a strong influence from the LTHs, their holding value not only reflects confidence in the long-term future of Solana but also serves as an important factor in sustaining the growth momentum of this coin. If the accumulation trend continues, support from LTHs could create a solid foundation, helping Solana to surpass key resistance levels.

However, despite strong support from the LTHs, the overall market sentiment towards Solana is still quite volatile and not really clear.

Market Sentiment and the Decline in New Addresses

The number of new addresses, an important indicator reflecting investor interest, has recently dropped to its lowest level in the past six months. This indicates that fewer new investors are entering the market, while also reflecting a lack of optimism about short-term recovery. The last time this index fell to such a low level was in October, indicating a weakening of investor confidence.

The decline in the number of new addresses may be a sign of increasing caution among potential investors, which directly affects the growth momentum of altcoins. Although long-term investors )LTH( continue to maintain an accumulation strategy, the lack of strong participation from new investors could hinder the robust growth of Solana in the near future.

![])https://img.gateio.im/social/moments-71d714dc5b334b499d657f2ebe006af3(Number of new Solana addresses | Source: Glassnode

Potential Scope

Currently, Solana is trading at $119, firmly maintaining above the important support level of $118. Although this altcoin is trying to break through the $135 level, market sentiment is mixed, indicating that it may face difficulties in breaking through this resistance level.

![])https://img.gateio.im/social/moments-bd45713b7f59b0c59352a122f428d085(SOL/USDT daily chart | Source: TradingViewTherefore, if Solana maintains its recovery momentum, it could continue to fluctuate within the range of $118 to $135, providing stability for the market and building a solid foundation for the next growth wave. This accumulation process will help SOL gather energy, ready for a strong breakout above $135.

However, if the price of SOL falls below $118, it could signal a change in market momentum, weakening this neutral outlook. Subsequently, the price could drop to $109 and increase losses for investors.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

• SOL targets $180 as the bulls defend the important support area of $114.57
• Grayscale files with the SEC to list a Solana ETF on the NYSE

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