Will Solana Rally Again? On-Chain Clues Sing

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Solana has waltzed back from the brink with a snappy intraday recovery, darling, after price pressure from the cruel tick of the market. SOL bounced as the broader crypto crowd pranced with nearly $200 billion in value added.

A brisk dash of dip-buying prevented deeper losses, stabilising SOL and delivering a 12% daily flourish despite the market’s perpetual sigh of uncertainty.

Solana LTHs Are Not So Bullish Yet

On-chain chatter reveals that the long-term sweethearts of Solana are loosening their purse strings. The HODLer Net Position Change has sagged, suggesting those hardy fans are less keen to buy the dips. This follows SOL’s sharp pullback over the past week, dampening long-term conviction.

A sustained recovery depends on those long-term devotees waking from their slumbers. If buying momentum remains tepid, Solana may struggle to build durable upside. Reduced support from this cohort limits demand absorption, increasing the risk that short-term rallies fade without broader participation from long-term investors.

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Momentum, dear reader, suggests selling pressure may be nearing exhaustion. The Money Flow Index is tiptoeing toward the oversold threshold below 20.0. When it slides into that corner, selling saturation tends to appear, often preceding a stabilisation or a short-term rebound.

Historically, Solana has flirted with oversold territory only three times in the past two and a half years. Each cameo coincided with notable price stabilization or reversal. If the indicator slides further, it may help SOL pause its decline and attract renewed dip-buying interest from traders.

SOL Price Recovery Still Likely

Solana hums around $88 at the time of writing after a 12% climb in the last 24 hours. Earlier, SOL slid about 13% to an intraday low. Sharp dip buying kept it from closing near $67, showing there’s demand lurking at lower levels.

Support from the broader market could nudge SOL above $90 soon. A proper recovery would need to reclaim $100 as support. Securing that level would signal improving momentum and clear the path toward a run at around $110 as confidence returns.

Downside risk persists if long-term holder selling continues. Failure to reclaim $100 could cap upside and leave SOL range-bound near $90. Under weaker conditions, the price may drift toward $78. Such a move would naysay the bullish thesis and prolong Solana’s little public squabble with gravity.

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2026-02-07 17:51