Solana Holders Are Unconvinced Of 20% Price Rise; Major Selling Begins

Solana (SOL) has surged more than 19% in the past week, lifting its price to $230. The rally comes as the altcoin attempts to recover from recent losses. 

Despite this strong push, holders appear unconvinced of its sustainability, with selling pressure rising as investors move to secure profits.

Solana Investors Are Bearish

Data from the HODLer Net Position Change shows that long-term holders (LTHs) are heavily selling their SOL. Their activity is at a seven-month high, reflecting a sharp rise in profit booking. This trend indicates that many LTHs do not believe the rally will hold and are exiting while gains remain intact.

The mid-September dip seems to have spooked investors, leading to this lack of conviction. Such aggressive selling undermines confidence in Solana’s current rally. If profit-taking continues, it may place downward pressure on SOL’s price.

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Solana HODLer Net Position Change. Source; Glassnode

Beyond selling activity, network growth is showing weakness. The number of new addresses on the Solana blockchain has fallen to a six-month low. This decline signals that fewer new participants are entering the market, suggesting limited incentives for fresh investment in the asset.

Lack of new capital inflows is a concern for Solana’s long-term growth. Without new buyers, sustaining rallies becomes increasingly difficult. The drop in adoption metrics reflects waning traction.

Solana New Addresses. Source; Glassnode

SOL Price Is Rallying

At the time of writing, Solana is trading at $230, just under the key $232 resistance. The 19% weekly rise has brought attention back to the altcoin. However, overcoming this resistance is critical for the rally’s continuation.

If Solana flips $232 into a support floor, the token could push higher. Securing this level would open the path toward $242 in the coming days. This would reinforce bullish momentum and signal investor confidence in a stronger uptrend.

Solana Price Analysis. Source:  TradingView

If bearish signals take hold, however, Solana risks slipping back to $221 or even $214. A fall to these levels would invalidate the bullish thesis and wipe out a chunk of the recent gains.