In a recent development, Solana underwent a significant drop in value, dipping below $170 momentarily. Yet, there are indications that it might be recuperating, having restored its position above the $200 mark as a potential base of support.
The main point for discussion now is whether short-term profits might slow its growth, or if long-term investors can maintain its progress and recovery.
Solana Investors Are Expected To Comeback
Over the last ten days, I’ve noticed a drop of approximately 500,000 new investors in the network, as the price of Solana corrected. These new investors are easily identified by unique addresses that have transacted on the network for the first time. This metric is crucial for measuring Solana’s popularity and could potentially improve once its price stabilizes.
Reviving prices frequently attracts fresh investors, boosting overall market confidence. As Solana continues to climb, a surge of first-time investors might fortify its standing, propelling its recovery forward with growing momentum.
The Market Value to Realized Value (MVRV) ratio for Solana is rapidly increasing, nearing the warning threshold of 1.65. In the past, when this ratio exceeds this point, it usually indicates increased activity of investors looking to cash out their profits, which can result in price drops. Just recently, a similar trend caused a decline.
In simpler terms, the recent surge in MVRV indicates that there might be an imminent wave of short-term sellers looking to cash out on Solana’s gains. This increased selling could potentially halt Solana’s recovery. To prevent a possible decline, long-term investors should hold onto their investments firmly.
SOL Price Prediction: Keeping Support Intact
Currently, Solana is being traded at around $202, managing to stay above the crucial support point of $201, following an 8% surge over the past day. This upward trend signifies a substantial step forward in its efforts to rebuild its bullish momentum.
Overcoming the $221 hurdle is the immediate test for Solana. This level has held strong against price increases for about a month now. Should fresh investors enter and counteract selling pressure, Solana might successfully break through this barrier. If successful, it could potentially propel Solana towards $245, further strengthening its optimistic projection as an altcoin.
If short-term investors decide to offload their Solana holdings, there’s a risk that the $201 price floor could be breached. Dropping below this point would challenge the bullish outlook, possibly triggering a slide towards $183. This underscores the importance of maintaining market support for a steady recovery trajectory.
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2025-01-16 17:30