#CryptoMarketPullback

Is Solana's Price Recovery Difficult? What Do On-Chain Data Show?

Following recent losses, Solana is showing a strong recovery today. SOL jumped powerfully, marking the day with approximately $200 billion added to the overall cryptocurrency market.

Aggressive dip buying prevented deeper losses. As a result, Solana has gained relative stability and achieved a 12% daily increase despite market uncertainty.
At the end of the chain, a slowdown in the appetite for long-term buying occurred. The HODLer Net Position Change indicator fell, suggesting a weakening of the accumulation pace of those best suited to hide during price declines. This shift reveals a breakdown in long-term stability, coinciding with the sharp decline of the SOL during the growing week.

A sustainable recovery depends on the absence of a repurchase of long-term funds. If buying intensity is weak, the formation of a sustained increase in the Solana becomes difficult. Supporting this group prevents the easy absorption of demand and increases the risk of short-term momentum quickly fading away without the involvement of long-term investors.
Momentum indicators suggest that selling pressure may be nearing its end. The Money Flow Index is approaching the oversold region below 20.0. Entering this area typically indicates that selling has peaked, followed by price stabilization or a short-term rebound.

Historically, Solana has only entered the oversold region three times in the last two and a half years. In all of these periods, the price either stabilized or turned upwards. If the decline in the indicator continues, the SOL decline may pause, and we could see renewed strong bottom buying from traders.
SOL price recovery still possible

Solana is trading around $88 and has gained 12% in the last 24 hours. Earlier in the session, SOL fell by approximately 13%, reaching its intraday low. Strong buying at the bottom prevented a close around $67, indicating strong demand at the lower levels.

The broader market support could allow SOL to rise above $90 in the short term. The crucial threshold for a recovery will be regaining the $100 support level. If it remains above this level, the improvement in momentum will be confirmed, and with increased confidence, the $110 region could become the target.
If long-term investor selling continues, downside risks remain. If the $100 level isn't breached again, upward momentum may be limited, and SOL could remain stuck around $90 for a while. In weaker market conditions, the price could retreat to $78. In such a scenario, the bullish narrative weakens, and the correction process in Solana could be prolonged.
‍$SOL $SOL